No studio closed as Microsoft Gaming lays off 650 more employees

Microsoft Gaming layoffs have been one of the biggest stories of downsizing in the gaming industry in recent months. Now, another round of layoffs is happening, as the Redmond company is ready to cut down 650 more roles, which are “mostly corporate and supporting functions.”

“For the past year, our goal has been to minimize disruption while welcoming new teams and enabling them to do their best work,” Xbox boss said in an email to employees, saying that the decision was made to “organize our business for long term success.”

“No games, devices, or experiences are being canceled and no studios are being closed as part of these adjustments today,” Spencer reassures.

Previously, Microsoft also laid off 1,900 employees from the gaming division, which included teams from Xbox, ZeniMax, and Activision Blizzard. The cuts, which represent a significant reduction from the division’s 22,000-strong workforce, come as part of a strategy to align with a sustainable cost structure and focus on growth.

Back in May, the Redmond company also closed several Bethesda Softworks studios, including Arkane Austin, now-revived Tango Gameworks, and Alpha Dog Studios as a part of its reorganization. An ex-Microsoft employee then suggested revenue struggles and pressure for returns drove the closures.

“I know that going through more changes like this is hard, but even in the most trying times, this team has been able to come together and show one another care and kindness as we work to continue delivering for our players,” Spencer closes the email.