Xbox and Microsoft to cut about 650 jobs

Phil Spencer confirms this in a letter addressed to his employees.

Xbox boss Phil Spencer has confirmed that Microsoft’s gaming division will cut 650 jobs In “mainly corporate and support functions” to ensure the company’s solvency and long-term success.

Game File reporter Stephen Totilo was the first to report the news and shared Spencer’s message to employees in full. In the statement, Phil Spencer acknowledged that this is a “difficult” time for the company and that affected employees will be supported with severance packages including severance pay, extended health care and outplacement services.

BREAKING – Microsoft to cut 650 more gaming jobs, impact expected to primarily hit management and support positions at Activision Blizzard. No games are being canceled; no executives are leaving the company. Second major job cut after ABK merger in 2024

More information here, including a note from Phil Spencer: https://t.co/Sq1jYdkeqj

— Stephen Totilo (@stephentotilo) September 12, 2024

The reasons for the loss of 650 jobs are explained below:

“With these changes, our teams, corporate and support resources are aligned for sustainable future growth. Additionally, we will be able to enrich our teams and business units with programs and resources designed to meet their needs.

According to a source from Game File, Most of the cuts are related to Activision Blizzard

. Phil Spencer also mentioned that nothing is being cancelled this time in terms of games, experiences or even entire studios, unlike Microsoft’s closure of a handful of studios earlier this year.

Obviously, it’s always terrible to hear news like this, so we send our best wishes to the 650 employees affected.

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