Microsoft will fire 650 more employees in its gaming division for the sake of success in the future

Game File and IGN, citing an address to employees by Microsoft Gaming CEO Phil Spencer, reported that another major wave of layoffs had taken place in Microsoft’s gaming division.

Image source: xbox

Recall that in January, Microsoft laid off 1,900 employees from Activision Blizzard, Xbox and ZeniMax (Bethesda), as a result of which Blizzard canceled an ambitious survival simulator codenamed Project Odyssey.

As it has become known, Microsoft now intends to lay off another 650 employees in its gaming division. According to Spencer, the changes will mainly affect the corporate and support departments.

Spencer emphasized that the new wave of layoffs will not lead to the cancellation of games and the closure of studios. The Game File source added that the heads of the Xbox departments will also not be affected by the cuts.

Image source: IGN

Spencer cited the further integration of Activision Blizzard, acquired by the company in October 2023 for $68.7 billion, into the structure of the platform holder as the reason for the next massive layoffs at Microsoft Gaming.

According to Spencer, this wave of layoffs is aimed at “orienting our business for long-term success”: the corporate department, support teams and resources are now “organized for sustainable growth in the future.”

Thus, the acquisition of Activision Blizzard resulted in the dismissal of more than 2.5 thousand employees for Microsoft’s gaming division. In total, 12 thousand people lost their jobs in the field of interactive entertainment in 2024.