Microsoft is implementing another round of layoffs, affecting approximately 650 employees, primarily in corporate and support roles, according to an internal memo obtained by The Verge. This move is the latest in a series of restructuring efforts following the company’s acquisition of Activision Blizzard.
In a message to staff, Xbox head Phil Spencer attributed the cuts to the need to “organize our business for long term success.” He reassured employees that the layoffs would not impact game development, device production, or overall gaming experiences. No studios are being shut down as a result of these changes.
The layoffs come seven months after Microsoft finalized its $68.7 billion acquisition of Activision Blizzard, following a lengthy regulatory battle in the US and UK. As part of the agreement with the UK’s Competition and Markets Authority, Microsoft agreed to divest its cloud gaming rights to Ubisoft, ensuring Activision titles would be available on multiple streaming platforms.
The company has already closed several game studios since the acquisition, including Arkane Austin, the developer of Redfall, as well as Tango Gameworks, Alpha Dog Games, and Roundhouse Games.
