Phil Spencer, head of Xbox, announced in an internal email to staff that Microsoft will lay off around 650 employees from its gaming team. The information comes from Stephen Totilo of Game File. The letter states that this will not result in the closure of studios or games in development.
It’s worth noting that earlier this year, Microsoft announced the lay-off of 1,900 employees. In May, the closure of four Xbox studios was also announced, including Tango Gameworks (later acquired by Krafton) and Arkane Austin, with additional lay-offs occurring in July.
Below is the complete message from Spencer, translated:
“Over the past year, our goal has been to minimize disruptions, welcoming new teams and enabling them to do their best work. As part of aligning our post-acquisition team structure and managing our business, we have decided to eliminate approximately 650 roles in Microsoft Gaming, primarily in business and support functions, to organize our business for long-term success”.
I know this is hard news to hear. We are deeply grateful for the contributions of our colleagues who are learning they have been affected. In the United States, we are assisting them with severance packages that include benefits, extended healthcare, and outplacement services to support their transition; outside the United States, packages will vary by location.
With these changes, our teams and business support resources are aligned for sustainable future growth and can better support our studio teams and business units with scalable programs and resources to meet their needs. Separately, as part of managing the business, there are some impacts on other teams that are adapting to changing priorities and managing the lifecycle and performance of games. No games, devices, or experiences will be cancelled, and no studios will close as part of these adjustments.
Throughout the history of our team, we have had both great moments and challenging ones. Today is one of the challenging days. I know facing further changes like this is difficult, but even in the toughest moments, this team has been able to come together and show care and kindness for one another as we work to continue serving our players. We appreciate your support as we navigate these changes and thank you for your compassion and mutual respect.
