Microsoft Announces Additional Layoffs in Gaming Sector

Microsoft has revealed plans to lay off an additional 650 employees within its gaming division. According to a memo from Xbox leader Phil Spencer, the layoffs will primarily affect corporate and support functions. Spencer emphasized that no game titles, devices, or experiences are being discontinued, and no studios are facing closure. The rationale behind this decision is to align the company's team structure post-acquisition and position the business for long-term success. Spencer noted that some teams are adjusting to shifting priorities and managing game lifecycles, which has resulted in certain impacts. The restructuring aims to ensure that corporate and support teams are aligned to drive sustainable growth and provide scalable support to studio teams and business units. This development follows earlier layoffs in the gaming division, including the closure of several Bethesda studios. Microsoft's recent acquisition of Activision Blizzard has led to significant changes in the gaming sector.