Microsoft Lays Off 650 Staff, Cuts Jobs From Its Gaming Division

A new report revealed that an internal memo announced Microsoft is laying off hundreds of employees. This internal memo from the Head of Xbox, Phil Spencer, sent on 12th September 2024, confirms that the recent job cuts are coming from Microsoft's gaming division, which comes months after its last round of layoffs.

In May 2024, Microsoft announced in an internal email forwarded to staff that it had closed the doors on Alpha Dog Games, Arkane Austin, and Tango Gameworks; the latter was acquired by KRAFTON last month. At the start of this year, Microsoft cut around 1,900 jobs across Activision Blizzard and Xbox, respectively, which impacted ZeniMax staffers and canceled Blizzard's previously announced survival game as part of company changes.

According to reporting from The Verge's Tom Warren, the internal memo states that this round of layoffs is "related to the Activision Blizzard deal" back in 2022 while making it clear that no projects "are being canceled” in its wake. Likewise, the internal memo stated that Microsoft won't be closing any studios within its gaming division as a result of the layoffs.

“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,” says Spencer (h/t The Verge).

The internal memo outlined that impacted staff will be supported following the news "with exit packages that include severance, extended healthcare, and outplacement services to help with their transition; outside the US packages will differ according to location." Spencer concluded the memo that while "today is one of the challenging days," he thanked the team for their "support as we navigate these changes, and we thank you for your compassion and respect for each other."