Microsoft lays off 650 employees from Xbox games unit in restructuring bid

More than 650 employees from Microsoft’s gaming division were laid off on Thursday, September 12, according to a report by The Verge. The job cuts were confirmed by Xbox chief Phil Spencer in an internal memo.
“To align our post-acquisition team structure and manage the business, we’ve decided to eliminate approximately 650 roles across Microsoft Gaming, mostly in corporate and support functions, to set our business up for long-term success,” Spencer stated.
However, Spencer reportedly clarified that these layoffs will not affect the release of any games, devices, or experiences. The job cuts are linked to Microsoft’s $68.7 billion acquisition of Activision Blizzard, the company behind hit games like Call of Duty, World of Warcraft, and Candy Crush Saga.
After protracted negotiations with regulators in the UK and US, Microsoft completed the Activision Blizzard acquisition in October of last year. Earlier this year, Microsoft reduced its 22,000-employee gaming workforce by 8%, laying off over 1,900 employees, and also shut down several video game studios, including Arkane Austin, the developer of Redfall.