Microsoft unveils 650 layoffs in its Gaming sector (Xbox)

Microsoft has freshly revealed a round of job reductions within its gaming division. The layoffs are connected to Microsoft’s purchase of Activision Blizzard, with Phil Spencer affirming that “no games, devices or experiences are being axed” during the process. Moreover, it has been relayed that no creators will be impacted by this wave of job cuts. If these assertions are accurate, it would essentially denote that Microsoft is refining its acquisition by eradicating duplicate roles.

Post the excitement, Microsoft is optimizing

Last year, Microsoft concluded one of the most substantial acquisitions in the sector’s history, writing a check for nearly $69 billion to acquire Activision Blizzard. Following this agreement, the Xbox Gaming division now supervises a plethora of development studios and surely aims to consolidate support and administrative functions.

Phil Spencer directly addressed employees to elucidate the situation:

Throughout the past year, our primary goal has been to minimize disruptions while welcoming new teams and empowering them to shine. As part of harmonizing our post-acquisition team structure and handling our business, we have opted to eliminate around 650 positions within Microsoft Gaming – particularly corporate and support functions – to restructure our business for enduring success.

I realize this is distressing news. We deeply appreciate our colleagues who discover that they are impacted by this situation. In the US, we are providing them with severance packages, comprehensive healthcare, and outplacement services to aid them through this transition. Outside the US, benefits differ depending on the location.

Due to these modifications, our corporate and support teams and resources are synchronized with sustainable future growth and can better assist our studio teams and business units with programs and resources that can adjust to their needs. Concurrently, as part of operating the business, other teams are influenced as they adapt to evolving priorities and oversee the life cycle and performance of games. No games, devices, or experiences are being terminated, and no studios are being shuttered as part of these adjustments today.

Over the course of our team’s journey, we’ve experienced some remarkable moments and some more challenging ones. Today is one of those difficult days. I understand that navigating through additional changes like this is tough, but even during the most trying times, this team has come together and demonstrated care and compassion towards one another while striving to continually deliver for our players. We appreciate your backing as we navigate through these changes and thank you for your empathy and mutual respect.

Phil