Microsoft cuts another 650 staff from games division

Xbox boss Phil Spencer attributes decision to process of “aligning [its] post-acquisition team structure”

Microsoft has announced further layoffs affecting 650 employees in its games division.

As IGN reports, Xbox boss Phil Spencer shared in a memo to staff that the redundancies will mainly affect its corporate and support sectors. He clarified that “no games, devices, or experiences” are being cancelled and there are no studio closures.

Spencer cited the process of “aligning [its] post-acquisition team structure” and “organising [its] business for long term success” as the reason for Microsoft’s decision.

“Separately, as part of running the business, there are some impacts to other teams as they adapt to shifting priorities and manage the lifecycle and performance of games,” he added.

“With these changes, our corporate and supporting teams and resources are aligned for sustainable future growth, and can better support our studio teams and business units with programs and resources that can scale to meet their needs.”

GamesIndustry.biz has reached out to Microsoft for further clarification.

Earlier this year, Microsoft laid off 1,900 employees from its games division. In May, it announced the closure of four Bethesda studios including Tango Gameworks and Arkane Austin.

Tango Gameworks and its Hi-Fi Rush IP were acquired by Krafton last month as part of a ‘strategic agreement.’

This follows Microsoft’s $68.7 billion acquisition of Activision Blizzard in October 2023 after facing regulatory hurdles in the UK, EU, and US.