Microsoft announces 650 more layoffs at Xbox

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As Xbox Series sales plummet, Microsoft is carrying out a new wave of layoffs in its Xbox division.

The acquisition of Activision-Blizzard, made official at the end of last year, led to the layoff of 1,900 people at the very beginning of 2024; the start of the school year will see them joined by 650 more employees.

Streamlining Workforce at Xbox

Microsoft has announced that it will be carrying out a new wave of job cuts within its Xbox division. This unfortunate sequence, which adds to the thousands of jobs eliminated in recent months in the video game industry, would mainly concern Activision-Blizzard, according to information from Game File.

No studio closures therefore, but a likely desire to merge certain duplicate positions within the group’s different entities.

The announcement comes as Xbox Series sales are sluggish. Microsoft is struggling to sell consoles and is instead trying to capitalize on Game Pass, its subscription gaming offering available on consoles, PCs, smartphones and smart TVs.

The 650 positions are primarily corporate and support employees. In a letter to Microsoft Gaming employees, Phil Spencer indicated “an alignment (…) in order to organize our business for long-term success.”

All affected employees will be offered “packages” to “help with their reintegration”, particularly in the United States, but international staff will be made redundant in accordance with local laws.

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