Microsoft has announced that it will lay off around 650 more employees from its gaming division, with those affected mostly working in "corporate and supporting functions" across Microsoft Gaming.
According to an internal email sent to Microsoft employees by gaming head Phil Spencer (via Game File), the cuts are part of Microsoft's strategy of "aligning our post-acquisition team structure and managing our business".
Game File cites "a source familiar with the matter" as saying that the cuts will mostly be focused on Activision Blizzard. According to Game File's Stephen Totilo, Spencer framed news of the layoffs in the context of last year's record-breaking Activision Blizzard acquisition.
In his email, Spencer says this round of layoffs won't result in any "games, devices, or experiences" being cut, which puts it in direct contrast to January's Microsoft layoffs. That wave of cuts apparently resulted in "at least one game project at Blizzard" being cut, per Totilo.
According to another of Totilo's sources, no Xbox business unit leaders or gaming teams will be cut as part of these layoffs either. That means we won't be seeing any further studio closures akin to the shock shutdown of Tango Gameworks and Arkane Austin, at least not for now.
Spencer closes his email by saying that while news of the layoffs may be "challenging", he has faith that Microsoft can "come together and show one another care and kindness".
These layoffs are part of an industry trend that has spanned the last couple of years, and it's not just Microsoft that's been affected, either. Companies like Sony, Take-Two, and EA have been affected, as well as smaller indie studios.
The layoff wave has also seen a number of major studios closed, including Saints Row developer Volition and (reportedly) Elex and Gothic studio Piranha Bytes, among others.
Since the majority of today's Microsoft cuts appear to be focused on Activision Blizzard's corporate division, it's unlikely this will affect the company's plans for upcoming games, but I'm sure that's small comfort for the employees being let go. Stay tuned for more.
