Microsoft Layoffs: Windows Maker Sacks 650 Xbox Employees in Latest Round of Job Cuts

Tech giant and Windows maker Microsoft has sacked around 650 employees in its latest round of job cuts this year. According to the report, the tech company laid off staff from its gaming unit Xbox after several gaming studios, including Redfall developer Arkane Austin, closed.

The job cut announcement made by the Xbox chief Phil Spencer in an internal memo to their employees on Thursday, September 12. Spencer made it clear that the layoffs are related to the Activision Blizzard deal and said that “no games, devices or experiences are being cancelled” and no studios are being closed as part of the layoffs today.

BREAKING - Microsoft says it is cutting 650 jobs in its Xbox unit, the third such layoffs this year - Bloomberg

— Insider Paper (@TheInsiderPaper) September 12, 2024

The Xbox chief said that to manage the business, the company has made certain tough decisions to eliminate 650 roles across the Microsoft Gaming department mostly corporate and supporting functions — to run the business for the long term.

Spencer, in an email reported by The Verge, said, “As part of aligning our post-acquisition team structure and managing our business, 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.”

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This latest job cut will impact employees in the US and internationally. For those affected by the layoffs, Microsoft is offering exit packages that include severance pay, extended healthcare benefits, and outplacement services to assist with the transition to new employment. 

"I know that this is difficult news to hear. We are deeply grateful for the contributions of our colleagues who are learning they are impacted. In the US, we’re supporting them with exit packages that include severance, extended healthcare, and outplacement services to help with their transition; outside the US packages will differ according to location," Phil Spencer's email reads.