Phil Spencer, enforcement vice president astatine Microsoft, speaks astatine the company's Xbox One X uncover lawsuit up of the E3 Electronic Entertainment Expo successful Los Angeles connected June 11, 2017.
Patrick T. Fallon | Bloomberg | Getty Images
Microsoft connected Thursday said that it is cutting 650 roles astatine its Xbox gaming division, successful the latest large circular of layoffs to deed the video crippled industry.
It marks the 3rd bid of redundancies successful Microsoft's video crippled portion since the company's blockbuster acquisition of Activision Blizzard, the steadfast down the Call of Duty franchise, for $69 cardinal successful cash.
The U.S. tech elephantine confirmed to CNBC that it is cutting hundreds of roles astatine Xbox, successful "mostly firm and supporting functions."
Bloomberg News reported the improvement earlier connected Thursday.
In a memo obtained by CNBC, Phil Spencer, CEO of Microsoft Gaming, told employees that the steadfast had taken this "difficult" determination to align its post-acquisition squad operation and "organize our concern for agelong word success."
"We are profoundly grateful for the contributions of our colleagues who are learning they are impacted," Spencer said successful the memo.
"In the US, we're supporting them with exit packages that see severance, extended healthcare, and outplacement services to assistance with their transition; extracurricular the US packages volition disagree according to location."
Microsoft's gaming main added that determination would beryllium "some impacts to different teams arsenic they accommodate to shifting priorities and negociate the lifecycle and show of games."
He stressed that nary games, devices oregon gaming experiences were being cancelled, and that nary studios are being closed arsenic a effect of the redundancies.
Microsoft has been cutting backmost connected costs astatine Xbox successful an effort to marque its mammoth takeover of Activision and its broader concern thrust connected gaming sustainable.
The institution antecedently purchased ZeniMax Media, the proprietor of Bethesda Softworks, for $7.5 cardinal successful 2021. Bethesda publishes large gaming titles, specified arsenic the Fallout and The Elder Scrolls series.
Microsoft isn't the lone gaming titan slashing jobs. Major gaming studios person chopped thousands of jobs astir the world, opening successful 2023 and continuing into 2024.
In February, Japan's Sony announced it was laying disconnected 900 workers from its PlayStation unit.
Gaming bundle firm Unity, Amazon-owned livestreaming work Twitch, mobile crippled steadfast Playtika, and societal level Discord person besides announced important rounds of layoffs.
Redundancies person nevertheless been peculiarly brutal astatine Xbox. Microsoft chopped 1,900 jobs successful its gaming division in January, conscionable 3 months aft closing its acquisition of Activision Blizzard.
In May, the institution announced it was closing a fig of gaming studios, including Arkane Austin, Tango Gameworks, and Alpha Dog. Several employees were besides laid disconnected arsenic portion of the shutdowns, though Microsoft has not disclosed however galore jobs were affected by these measures.
You tin work the afloat memo from Phil Spencer, CEO of Microsoft Gaming, below:
Subject: Changes to Microsoft Gaming
For the past year, our extremity has been to minimize disruption portion welcoming caller teams and enabling them to bash their champion work. As portion of aligning our post-acquisition squad operation and managing our business, we person made the determination to destruct astir 650 roles crossed Microsoft Gaming—mostly firm and supporting functions—to signifier our concern for agelong word success.
I cognize that this is hard quality to hear. We are profoundly grateful for the contributions of our colleagues who are learning they are impacted. In the US, we're supporting them with exit packages that see severance, extended healthcare, and outplacement services to assistance with their transition; extracurricular the US packages volition disagree according to location.
With these changes, our firm and supporting teams and resources are aligned for sustainable aboriginal growth, and tin amended enactment our workplace teams and concern units with programs and resources that tin standard to conscionable their needs. Separately, arsenic portion of moving the business, determination are immoderate impacts to different teams arsenic they accommodate to shifting priorities and negociate the lifecycle and show of games. No games, devices oregon experiences are being cancelled and nary studios are being closed arsenic portion of these adjustments today.
Throughout our team's history, we person had large moments, and we person had challenging ones. Today is 1 of the challenging days. I cognize that going done much changes similar this is hard, but adjacent successful the astir trying times, this squad has been capable to travel unneurotic and amusement 1 different attraction and kindness arsenic we enactment to proceed delivering for our players. We admit your enactment arsenic we navigate these changes and we convey you for your compassion and respect for each other.
Phil
English (US) ·