Following the huge wave of lay-offs in January, when nearly 1,900 jobs were cut at Microsoft Gaming, Phil Spencer has announced a further 650 job losses. The reason given for the job cuts is the impact of the acquisition and integration of Activision Blizzard.

Microsoft is cutting another 650 jobs from its gaming division. This is the second wave of lay-offs this year, following the 1,900 lay-offs at the end of January 2024. Phil Spencer informed the team of the news in an email that has been obtained by Stephen Totilo. The Microsoft Gaming CEO explains that the job cuts are related to the completed acquisition of Activision Blizzard and that they are adjusting the team structure and their business in general. In particular, "corporate and supporting functions" will be eliminated. According to a source close to Totilo, this will affect Activision Blizzard in particular, and not the Xbox Unit Leaders or related gaming teams.

"No games, devices or experiences are being cancelled and no studios are being closed as part of these adjustments today," Phil Spencer wrote in the email. "With these changes, our corporate and supporting teams and resources are aligned for sustainable future growth, and can better support our studio teams and business units with programs and resources that can scale to meet their needs." He added that such decisions are challenging and difficult, but necessary to position the business unit for future growth and to better support its studios and teams.


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