Games Industry Layoffs Games Industry Layoffs 2024 Microsoft Microsoft Gaming Microsoft Layoffs News Phil Spencer Xbox

Microsoft Lays Off Another 650 People From Its Games Business

Microsoft has announced even more layoffs with another 650 people being cut from its games business.

Originally reported by Game File, head of Microsoft gaming Phil Spencer sent out an email to those under the gaming branch of Microsoft early Thursday morning announcing the cuts.

This is the second time in 2024 that layoffs have directly impacted Microsoft’s gaming business, after it laid off an eye-watering 1,900 people right at the start of the year.

Towards the end of 2023 Microsoft officially closed its purchase of Activision Blizzard King. Part of closing the deal was promising not to enact mass layoffs shortly after. It took only three months to break that promise with the 1,900, and it’s done it again with 650 more people.

That promise to avoid layoffs is worth noting when in Spencer’s email, he positions the cuts as part of the company’s strategy “post-acquisition.”

“As part of aligning our post-acquisition team structure and managing our business,” Spencer wrote, “we have made the decision to eliminate approximately 650 roles across Microsoft Gaming – mostly corporate and supporting functions – to organize our business for long term success.”

Microsoft alone now accounts for 2,550 laid off developers in 2024.

Source – [Game File]