Microsoft Cuts 650 Jobs in Gaming Unit

Microsoft has announced another wave of layoffs, cutting 650 jobs from its gaming division, according to a memo sent by Xbox CEO Phil Spencer on September 12. This comes just months after Microsoft laid off 1,900 employees earlier this year, bringing the total number of job losses in its gaming sector to 2,550 since the company acquired Activision Blizzard in 2023 for $69 billion.

In his memo, Spencer explained that these cuts primarily affect corporate and support functions, aiming to streamline the company for “long term success.” He assured employees that no games, devices, or studios are being closed or canceled as part of these layoffs. He emphasized, “Our corporate and supporting teams and resources are aligned for sustainable future growth.”

Xbox Faces Challenges Amid Industry Changes

These cuts occur during a tumultuous time in the gaming industry, with several companies, including Microsoft, downsizing significantly. Spencer addressed the difficulty of the situation, stating, “We are deeply grateful for the contributions of our colleagues… We’re supporting them with severance, extended healthcare, and outplacement services to help with their transition.”

Despite the layoffs, Microsoft continues to push forward with ambitious plans. The company is preparing to launch the next installment in the Call of Duty franchise, Black Ops 6, in October, along with several other projects, including rumored next-gen Xbox consoles and possibly an Xbox handheld.

Phil Spencer has reiterated that while these are hard decisions, they are necessary to ensure Xbox’s long-term success and sustainability.