Microsoft has laid off another 650 employees from its Xbox division, marking the latest round of job cuts linked to its acquisition of Activision Blizzard.
According to an internal memo seen by The Verge, these layoffs primarily affect corporate and supporting functions. Despite the staffing reductions, Xbox chief Phil Spencer assured employees that no games, devices, or experiences are being canceled.
These cuts follow an earlier round of layoffs, where 1,900 jobs were eliminated across Xbox and Activision. Spencer explained that these decisions were made to position Microsoft Gaming for long-term success, noting that the company is not closing any studios as part of this restructuring.
Microsoft finalized its $68.7 billion acquisition of Activision Blizzard in October 2023 after a prolonged regulatory battle with authorities in the US and UK. To gain approval from the UK’s Competition and Markets Authority, Microsoft agreed to sell its cloud gaming rights to Ubisoft, ensuring that Activision Blizzard titles would be available on multiple game-streaming platforms.
Since the acquisition, Microsoft has closed several game development studios, including Arkane Austin, Tango Gameworks, Alpha Dog Games, and Roundhouse Games.
Featured Image courtesy of David Becker/Getty Images for The Licensing Expo)
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