Microsoft has laid off 650 more employees from the Xbox Games division as per the reports. Phill Spencer has sent out a memo stating “mostly corporate and supporting functions”. These jobs were cut out in favor of the long-term success of the company. It is the second major layoff from the company. There have been multiple layoffs across different Microsoft divisions.
The layoff was reported by multiple sites with IGN getting a hand on the memo which states “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. 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.”
Since the beginning of the year, the Xbox Games division has seen multiple job cuts and layoffs. Microsoft cut 1900 jobs across Xbox, Activision Blizzard, and Bethesda.
In the month of May Xbox closed down four studios which included Alpha Dog Games, Arkane Austin, Roundhouse, and, Tango Gamework. Tango Gamework was later acquired and reopened by Krafton while Roundhouse Studios was merged into ZiniMax Studios Online.
More Layoffs
These layoffs took place after Microsoft acquired Activision Blizzard. In the month of January, Phill Spencer said that they had identified overlaps so they took the best course of action. Once again, he refers to acquisition stating that they are setting their team’s structure after the acquisition. Phill Spencer clarified “No games, devices, or experiences are being canceled and no studios are being closed as part of these adjustments today.”
The number of Microsoft’s overall layoffs has reached 12,000. Microsoft is not alone, a lot of other gaming companies have also laid off employees.
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