Microsoft has announced that it will lay off 650 more employees in its gaming department. The decision was announced in a letter sent to employees by Phil Spencer, head of the Xbox division. Spencer stated that the layoffs will mainly affect the corporate and support areas of the company.
Will Xbox close its studios?
Phil Spencer emphasized that the economic cuts in the department will not lead to the cancellation of games, devices or experiences and that no studio closures are in question.
Spencer said the decision was made to reorganize the company’s post-acquisition team structure and organize their business for long-term success. He added that the process of adapting to the game lifecycle and performance management has had an impact on some teams.
Earlier this year, Microsoft laid off 1,900 employees in its games department. It also decided to close four studios, including Bethesda’s Tango Gameworks and Arkane Austin in May. Last month, Tango Gameworks and the Hi-Fi Rush IP were acquired by Krafton in a ‘strategic deal’.
Apple Watch Ultra 3 and Watch SE 3 will be introduced in 2025. Breaking with the norm, the company stopped announcing new models every year.
Microsoft’s move follows its $68.7 billion acquisition of Activision Blizzard in 2023. This giant acquisition faced regulatory hurdles, especially in the United Kingdom, the European Union and the United States, and Microsoft completed the acquisition by officially ruling out one lawsuit after another.
However, it seems that this acquisition will cause more Microsoft employees to be laid off… Do not forget to share your views on the subject with us in the comments.
