Following the purchase of Activision Blizzard, Microsoft has slashed more jobs within its Xbox division.
Phil Spencer, the boss at Microsoft Gaming, confirmed on September 12 that around 650 positions have been cut, though no studios have shut down and no games have been canceled. This comes after an earlier reduction of 1,900 jobs in January, making it a total of roughly 2,550 cuts since the $75.4 billion deal was finalized in October 2023.
In a memo shared by IGN, Spencer explained that the layoffs are part of Microsoft’s plan to adjust the team structure post-acquisition.
Microsoft stated that the 650 layoffs are mainly in “corporate and supporting” roles. Employees in the US will receive severance packages, extended healthcare, and help finding new jobs. Similar support is available for those outside the US, although details differ depending on the country.
Spencer noted, “With these changes, our corporate and supporting teams and resources are aligned for sustainable future growth, and can better support our studio teams and business units with programs and resources that can scale to meet their needs.” He added that while other teams are adjusting to new priorities, no games or studios are being shut down.
We all feel a bit sad about these layoffs.
Back in March, Spencer mentioned that the initial job cuts in January were essential to make Xbox a profitable venture after acquiring Activision Blizzard.
Earlier this year, Microsoft also closed several studios like Arkane Austin, Roundhouse Games, Alpha Dog Studios, and Tango Gameworks. Although Krafton saved Tango Gameworks, the others didn’t survive.
2024 has been tough for video game industry workers, with over 11,000 layoffs reported. A former PlayStation executive recently mentioned that these cuts aren’t just about greed but are influenced by broader economic issues. Ubisoft, Bungie, and many others have also faced significant layoffs this year.
