The team at Xbox is encountering another wave of job cuts. This time, Phil Spencer, the CEO of Microsoft Gaming, has informed staff about a 3% workforce reduction across all studios. While the percentage may seem small, it translates to 650 individuals losing their positions, bringing the total number of employees laid off by Microsoft Gaming this year to over 2,500.

These cost-saving measures began shortly after Microsoft completed its acquisition of Activision Blizzard, and unfortunately, there have been ongoing job cuts throughout the year.

Initially reported by Variety, Phil Spencer, the CEO of Microsoft Gaming, communicated this news to all employees through a memo sent at 3AM in Seattle, Microsoft’s headquarters. The impact of these layoffs will primarily be felt on the corporate side. As a result, there are no plans for studio closures or game cancellations as a result of this latest round of workforce reductions.

It is hoped that Microsoft will begin to demonstrate financial improvements in the coming months, with several major game releases on the horizon, such as the expansion of Starfield, Obsidian’s new fantasy RPG, Avowed, and the Indiana Jones title from Machine Games.

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