Microsoft to Lay Off 650 More Employees at Xbox

As a longtime gamer and follower of Microsoft’s gaming ventures, I find myself once again in a state of disbelief. The recent announcement of Xbox’s Phil Spencer about the impending layoffs of approximately 650 people from its gaming team is truly heart-wrenching.

In a private message sent to employees, Xbox’s head honcho, Phil Spencer, revealed plans for Microsoft to dismiss around 650 team members within their gaming division.

According to a report by Stephen Totilo on GameFile, we’ve independently confirmed the information.

The full email reads,

Subject: Changes to Microsoft Gaming

Over the past year, we’ve aimed to reduce interruptions as we integrate new teams and help them thrive. To streamline our company structure following an acquisition and ensure long-term growth, we’ve decided to eliminate around 650 positions within Microsoft Gaming, primarily focusing on corporate and support roles. This reorganization is intended for the success of our business in the future.

It’s tough news indeed, but I want to express our heartfelt gratitude for the valuable work done by those who are affected. In the United States, we’re offering support in the form of exit packages that encompass severance pay, extended healthcare coverage, and outplacement services to facilitate their transition. However, the specifics may vary depending on the location outside the US.

By implementing these modifications, our corporate and auxiliary groups will now be in sync, promoting a continuous expansion for the future, and providing enhanced assistance to our studio teams and business sectors via adaptable programs and resources. Meanwhile, in the course of managing our operations, certain departments may experience changes as they adjust to new priorities and handle the development and upkeep of games throughout their lifecycle. It is important to clarify that no game productions, devices, or experiences are being discontinued, and no studios will be shut down due to these modifications at this time.

Over the years, our team has experienced both triumphant and tough times. Today is one of those difficult days. I understand that undergoing further changes can be demanding, but in the face of adversity, this team has always managed to show empathy and kindness towards each other while striving to maintain our commitment to our players. We value your backing as we tackle these challenges, and we express our gratitude for your understanding and consideration for one another.

Phil”

This year, Microsoft made public their decision to let go of approximately 1900 employees within the company. Additionally, it was revealed in May 2024 that Xbox plans to close down four of its video game development studios, which include Tango Gameworks and Arkane Austin among them.

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