• Microsoft has confirmed that it is letting go an estimated 650 employees working within its Xbox gaming divisions.
• It is the most significant number of cuts to Xbox jobs since the beginning of this year.
• Xbox head Phil Spencer noted that no studios are being shut down on the back of these layoffs.

Microsoft is set to purge another significant number of employees this week, following the issuing of an internal memo by Xbox head Phil Spencer.

This is the second notable set mass layoffs by Microsoft this year, with 1 900 Xbox jobs axed at the beginning of 2024 following the completion of the company’s drawn out acquisition of Activision Blizzard. Now, an estimated 650 Xbox jobs are being cut, which too are related to the aforementioned acquisition.

In his memo, which has been seen by publications like The Verge, Spencer explained that no studios would be shut down as a result, and no tangible impact will befall any in-development titles, devices, or projects. This is quite different to what we saw in May this year, as Arkane Austin, the studio behind Redfall, was recently nixed.

“For the past year, our goal has been to minimize disruption while welcoming new teams and enabling them to do their best work. 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,” the internal memo from Spencer reportedly explains.

“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. No games, devices or experiences are being cancelled and no studios are being closed as part of these adjustments today,” he added.

Just how healthy a long-term business position the cuts to Xbox jobs will be for Microsoft’s gaming division remains to be seen, but it is clear that the desire to snap up as many large studios and developers/publishers in recent years is having an impact elsewhere.

“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,” ended Spencer’s memo.

How those left behind to pick up the slack as a result of mass layoffs will feel about the current state of affairs, remains to be seen.

[Image – Photo by Pedro Bariak on Unsplash]