Microsoft Layoffs Impact Xbox Development: 650 Roles Eliminated

Thursday, 12 September 2024, 03:49

Microsoft layoffs have struck again, affecting approximately 650 employees in its Xbox division. This comes after previous cuts earlier this year, which impacted many roles within the gaming sector. Xbox chief Phil Spencer confirmed that these layoffs are related to the recent Activision Blizzard acquisition and are aimed at streamlining corporate functions.
Theverge
Microsoft Layoffs Impact Xbox Development: 650 Roles Eliminated

Overview of the Layoffs

Microsoft has announced another round of layoffs, impacting about 650 employees across the Xbox division. This decision marks a continuation of a trend seen earlier in the year when over 1,900 roles were cut, primarily affecting Activision Blizzard and Xbox.

Details from Phil Spencer's Memo

Phil Spencer, the head of Xbox, communicated the layoffs through an internal memo. He emphasized that these changes are part of a larger strategy to align the organizational structure post-Activision Blizzard acquisition, rather than a reflection of performance issues within game development.

  • No Game Cancellations: Spencer reassured that no games, devices, or experiences are being cancelled.
  • Corporate Functions Affected: The layoffs primarily impact corporate and supporting roles, not development teams.
  • Support for Affected Employees: Microsoft is providing severance, extended healthcare, and outplacement services to affected employees.

Implications for the Gaming Division

As Microsoft reconfigures its gaming division, there may be further shifts in the focus of corporate resources. Spencer acknowledged the difficult nature of these transitions, but affirmed the company's commitment to future growth and employee support as they navigate these changes.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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