Impact of Microsoft Layoffs on Xbox Division and Gaming Operations

Thursday, 12 September 2024, 08:54

Microsoft layoffs continue as the company cuts 650 jobs in the Xbox division, part of a strategic restructuring. This move follows earlier job cuts and aims to streamline operations after the Activision Blizzard acquisition. Phil Spencer's memo assures that no game projects will be affected. Microsoft’s restructuring is essential for long-term success.
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Impact of Microsoft Layoffs on Xbox Division and Gaming Operations

Microsoft Layoffs: An Ongoing Strategy for Restructuring

Microsoft has announced 650 more job cuts in the Xbox division, continuing its efforts to streamline operations amidst its recent activities. This latest round is a significant move following a previous reduction of 1,900 employees in January 2024, marking a focused approach post-Activision Blizzard acquisition.

Phil Spencer's Memo on Job Cuts

In a memo, Phil Spencer, the chief of Xbox, confirmed that the layoffs primarily impact corporate and support roles. He emphasized that no game projects or studios would be canceled due to this workforce reduction.

Focus on Strategic Restructuring

According to Spencer, this realignment of resources is crucial for long-term success and for providing better support to studio teams. The recent job cuts are part of efforts to minimize disruption as new teams integrate.

Employee Transition Support

  • U.S. employees impacted by the cuts will receive severance packages and extended healthcare benefits.
  • International exit packages will vary according to local laws.

A Year of Major Layoffs at Microsoft

The layoffs in Xbox are just one chapter in a broader narrative of job reductions at Microsoft throughout 2024. As the company focuses on aligning resources, this strategic move is essential in fostering growth in its gaming division.


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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