Microsoft is laying off another 650 employees from its Xbox gaming division.
As reported by IGNMicrosoft Gaming CEO Phil Spencer sent a memo to employees today, September 12, informing them that the decision was made to “organize our company for long-term success” and that it will primarily impact business and support functions.
“Over the past year, our goal has been to minimize disruption while welcoming new teams and enabling them to do their best work,” Spencer wrote. “As part of aligning our post-acquisition team structure and managing our business, we made the decision to eliminate approximately 650 roles within Microsoft Gaming — primarily corporate and support functions — to organize our business for long-term success.
“I know this is difficult news to hear. We are extremely grateful for the contributions of our colleagues who are learning they have been impacted. In the U.S., we are supporting them with exit packages that include severance pay, comprehensive healthcare, and outplacement services to help with their transition; outside the U.S., packages vary by location.”
Spencer explained that the changes will also impact other teams “as they adapt to changing priorities and manage the lifecycle and performance of games.” However, he confirmed that no games, devices or experiences have been canceled, and that no studios will close.
“These changes align our business and support teams and resources for sustainable future growth, and allow us to better support our studio teams and business units with programs and resources that can scale to meet their needs,” the Xbox boss said.
“Separately, as part of running the business, there are some impacts to other teams as they adapt to changing priorities and manage the lifecycle and performance of games. No games, devices, or experiences are being canceled, and no studios are being closed as part of these adjustments today.”
Spencer went on to write that this is a challenging day and that the changes will be tough, “but even in the most difficult times, this team has managed to come together and show care and kindness to one another as we work to continue to provide our players with what they need.”
“We appreciate your support as we navigate these changes and thank you for your compassion and respect for one another,” Spencer added.
Earlier this year, Microsoft laid off 1,900 employees at Xbox, Activision Blizzard and ZeniMax so it could focus on “the best growth opportunities” following its $69 billion acquisition of Activision Blizzard last year.
This was the beginning of a series of other layoffs, as Microsoft later closed four Bethesda Softworks studios, including Hi-Fi rush developer Tango Gameworks, Redfall’Arkane Austin, Roundhouse Studios and Alpha Dog Games.