Head of Microsoft's gaming division, Phil Spencer, announced new major layoffs. This time, the corporation will part ways with 650 specialists.
Diablo IV
The first to report the layoffs was journalist Stephen Totilo from Game File, citing an email that Spencer sent to employees on the morning of September 12. In the email, the top manager explained that the layoffs are necessary to “align the business structure” and “ensure long-term growth.”
The layoffs will mainly affect those teams performing “corporate and support” functions.
Spencer emphasized that Microsoft does not intend to close any studios. Moreover, the layoffs will not lead to the cancellation of any games, devices, or projects.
Totilo's sources added that the majority of the layoffs will occur at Activision Blizzard. It is expected that no head of any gaming teams will face layoffs.
This is the second major wave of layoffs in Microsoft's gaming division over the past year. Recall that in January, the corporation announced plans to lay off 1900 employees from Xbox, Activision Blizzard, and ZeniMax Media. Additionally, in May, Microsoft closed four Bethesda studios, including Arkane Austin and Tango Gameworks. The latter was later revived thanks to KRAFTON's intervention.