Microsoft layoffs: Tech Giant Fires 650 More Xbox Employees; Check Details

For the US employees, the company is offering exit packages that include severance pay, extended healthcare benefits, and outplacement services to aid in their transition to new jobs.

Microsoft layoffs: Microsoft is cutting 650 jobs from its Xbox division in a new round of layoffs, marking the second significant reduction in its gaming sector this year. This follows an earlier cut of about 1,900 positions in January 2024. The company says these layoffs are part of a larger restructuring effort to streamline its gaming operations, especially after its major acquisition of Activision Blizzard.

Microsoft’s gaming chief, Phil Spencer, announced the recent job cuts with employees through an internal memo. According to Spencer, the latest layoffs will mainly impact corporate and support positions within the gaming division. He assured employees that no games, devices, or experiences will be cancelled, and no studios will be closed as a result of these reductions.

"For the past year, our goal has been to minimise disruption while welcoming new teams and enabling them to do their best work," Spencer stated in the memo, according to a report by The Verge.

He highlighted the company’s dedication to long-term success, stating, "With these changes, our corporate and support 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,” Spencer said in the internal memo.

The memo states that Microsoft’s recent job cuts will affect employees both in the United States and internationally. For those in the US, the company is offering exit packages that include severance pay, extended healthcare benefits, and outplacement services to aid in their transition to new jobs. For employees outside the US, the packages will vary according to regional guidelines and policies.

Spencer also noted that these layoffs will help Microsoft’s corporate and support teams better align with studio teams and business units. “Our teams will now be better supported with programs and resources that can scale to meet their needs,” Spencer wrote in the memo.