Microsoft has laid off 650 employees within its Gaming division, according to an internal memo from Xbox head Phil Spencer shared Thursday, April 12. The company said the reductions are part of a “post-acquisition team structure alignment and business management.”
Layoffs linked to Activision Blizzard acquisition
The memo ties the restructuring to Microsoft’s October acquisition of Activision Blizzard, the nearly $70 billion deal that ranks as one of the largest in gaming history. Earlier this year, Microsoft had already cut 1,900 roles from the acquired company. With the latest round, Xbox has eliminated more than 2,500 positions since completing the acquisition.
Projects and studios will continue, company says
Phil Spencer expressed gratitude to affected employees and described the announcement as difficult. He also emphasized that “no game, device or experience is being canceled” and that no studio is being closed as a result of these recent layoffs.
That reassurance comes after Microsoft previously closed four studios, including Arkane Austin (developer of Redfall), Tango Gameworks (Hi-Fi Rush) and Alpha Dog (Mighty Doom), making continuity assurances noteworthy for investors and developers.
Support for affected staff
According to Spencer’s memo, employees impacted by the reductions will receive company support including severance pay, extended healthcare coverage and outplacement services to assist with job transitions.
Broader context: tech layoffs continue in 2024
Data aggregated by Layoffs.fyi shows that major technology companies have cut more than 130,000 jobs so far in 2024—a lower total than the roughly 264,000 jobs eliminated in 2023 but still a significant figure. Microsoft’s Gaming layoffs are part of wider cost-cutting and restructuring moves across the company; since 2023 Microsoft has reduced headcount by over 10,000 roles across various divisions.
The internal memo and reporting on the Xbox layoffs were detailed by The Verge. Additional coverage and company-wide numbers were compiled by Layoffs.fyi.
