This wave is not expected to result in “game cancellations or studio closures,” according to Phil Spencer, head of Microsoft Gaming.
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Microsoft announced 650 additional layoffs at Xbox on Thursday, September 12. Phil Spencer, head of Microsoft Gaming, informed his teams in an email, reported several media outlets such as CNBC and The World and Bloomberg. Phil Spencer explains that it is about“align the structure” teams following the Activision Blizzard acquisition in October 2023. Objective: “organize our business for long-term success”according to the leader.
According to Phil Spencer, the positions affected by this wave of layoffs concern: “mostly” of the “corporate and support functions”. In other words, it should not result in “game cancellations or studio closures”.
Microsoft announced in January that it was laying off 1,900 people. The firm then announced in May that it was closing four studios. Globally, before this announcement, the video game industry had laid off more than 11,500 people since January, according to the Game Industry Layoffs website, after already laying off more than 10,000 people in 2023.