Microsoft Gaming is laying off another 650 employees following major cuts in January
Following major layoffs earlier this year, Microsoft is laying off an additional 650 employees in its Gaming division, but has stated that no games have been canceled and no studios have closed as a result.
The details:
As reported by Game File and IGN, Microsoft Gaming boss Phil Spencer informed employees of the cuts via a company-wide email on Thursday. “As part of aligning our post-acquisition team structure and managing our business, we have made the decision to eliminate approximately 650 roles across Microsoft Gaming—mostly corporate and supporting functions—to organize our business for long term success,” Spencer wrote. “Throughout our team’s history, we have had great moments, and we have had challenging ones. Today is one of the challenging days. I know that going through more changes like this is hard, but even in the most trying times, this team has been able to come together and show one another care and kindness as we work to continue delivering for our players.”
Spencer confirmed that "no games, devices, or experiences" will be scrapped as a result of the layoffs, and no studios will be closed. Game File also reports, citing sources familiar with the situation, that none of Microsoft Gaming's business unit leaders will be let go.
Microsoft announced in January that it would cut 1,900 jobs in its gaming division, affecting those at Xbox, Activision Blizzard, and ZeniMax. At least one project at Blizzard was canceled as a result of the layoffs, which were said to be necessary to keep the company on track with its goal of creating a "sustainable cost structure that will support the whole of our growing business."
With the latest layoffs, Microsoft Gaming has let go of over 2,500 employees since its acquisition of Activision Blizzard last year. The company has also shut down several studios, including Arkane Austin, Alpha Dog, Roundhouse Studios, and Tango Gameworks, the latter of which was later acquired by Krafton along with some of its former employees and the Hi-Fi Rush IP.
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