Xbox lays off 650 employees in latest round of job cuts

Published , by Donovan Erskine

Microsoft is conducting another round of layoffs in its gaming division. The job cuts impact 650 workers, primarily in its corporate and support teams.

Xbox boss Phil Spencer announced the layoffs in a memo to employees, which IGN obtained. “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,” he wrote. He goes on to say that this decision was made so that the company can “organize our business for long term success.”


Source: Microsoft

Spencer goes on to say that there will be no game cancellations or studio closures as a result of the layoffs. Back in May, Xbox closed Arkane Austin and Tango Gameworks as a result of layoffs at subsidiary Bethesda. The latter was recently revived following an acquisition by PUBG publisher Krafton.

This announcement comes after Microsoft laid off a staggering 1,900 workers from its gaming division back in January. With the yearly total now north of 2,000 for Microsoft alone, layoffs continue to be the story for the gaming industry in 2024.