Microsoft has laid off a further 650 Xbox staff, though no games have been cancelled or studios have been closed this time.
The news was shared by CEO of Microsoft Gaming Phil Spencer in an internal memo obtained by IGN, with changes made to “organise our business for long term success”.
The layoffs follow the 1900 people who lost their jobs at the company in January this year. It means Microsoft has now laid off 2,550 staff in the last year.
The roles affected are “mostly corporate and supporting functions,” said Spencer
“For the past year, our goal has been to minimise disruption while welcoming new teams and enabling them to do their best work. 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 – mostly corporate and supporting functions – to organise our business for long term success,” reads Spencer’s email.
“I know that this is difficult news to hear. We are deeply grateful for the contributions of our colleagues who are learning they are impacted. In the US, we’re supporting them with exit packages that include severance, extended healthcare, and outplacement services to help with their transition; outside the US packages will differ according to location.”
Spencer stated now the company’s “corporate and supporting teams and resources are aligned for sustainable future growth”, but confirmed “no games, devices or experiences are being cancelled and no studios are being closed as part of these adjustments today”.
On top of those 1900 layoffs in January, Microsoft shut down three studios in June: Arkane Austin, Tango Gameworks, and Alpha Dog.
Back in March, Spencer discussed the waves of layoffs affecting the industry, and said he was “most concerned” about its overall “lack of growth”.
Earlier this week, ex-Sony Europe president Chris Deering opined layoffs across the industry were not the result of corporate greed.