Microsoft is making significant changes to its global workforce, particularly affecting their Xbox branch. Recently, the tech giant decided to lay off an additional 650 employees from their gaming business, following a memo issued by Xbox head Phil Spencer last week.
In his communication, Spencer reiterated sentiments from earlier this year when Microsoft, after acquiring Activision Blizzard, laid off 1,900 members of its global staff. These latest layoffs are targeted primarily at corporate and supportive function roles within their gaming division, directly tied to integrating the new acquisition.
Spencer stated, “As part of aligning our post-acquisition team structure and managing our business, we have made the decision to eliminate approximately 650 roles across Microsoft Gaming — mostly corporate and supporting functions — to organize our business for long-term success.”
With this move, the total number of dismissed employees in Microsoft’s gaming division has surged to 2,550. Spencer’s full memo reveals the complexities of the situation:
“For the past year, our goal has been to minimize disruption while welcoming new teams and enabling them to do their best work. As part of aligning our post-acquisition team structure and managing our business, we have made the decision to eliminate approximately 650 roles across Microsoft Gaming — mostly corporate and supporting functions — to organize our business for long term success.
I know this is difficult news to bear. We are deeply grateful for the contributions of our affected colleagues. In the U.S., we’re offering exit packages that include severance, extended healthcare, and outplacement services to aid in their transition; packages for employees outside the U.S. will vary by location.
These adjustments aim to realign our corporate and supportive teams for sustainable future growth, enhancing our ability to support studio teams and business units with scalable programs and resources. Also, some impacts will be felt by other teams as they adapt to shifting priorities and manage game lifecycles and performance. Importantly, no games, devices, or experiences are being canceled, and no studios are closing due to these changes today.
Throughout our history, we’ve had great and challenging moments. Today is indeed one of the tough times. However, even during such trying periods, our team has always shown exceptional care and kindness towards each other. We will continue to support our players, and I appreciate your support as we navigate these changes. Thank you for your compassion and respect for one another.”
This strategic move by Microsoft is seen as an effort to prepare their gaming division for sustained growth while aligning with their recent business expansions.
