Microsoft Gaming to Lay Off 3% of Global Workforce, About 650 Employees, in Additional Post-Activision Blizzard Cuts

variety.com:

Jennifer Maas TV Business Writer Microsoft Gaming will lay off approximately 650 employees, or 3% of the Xbox owner’s global workforce, in a new round of eliminations following last year’s completion of its Activision Blizzard acquisition.

The cuts will primarily impact staffers in “corporate and supporting functions,” per Microsoft Gaming CEO Phil Spencer. “For the past year, our goal has been to minimize disruption while welcoming new teams and enabling them to do their best work,” Spencer said in an email to staff Thursday, which was obtained by Variety. “As part of aligning our post-acquisition team structure and managing our business, we have made the decision to eliminate approximately 650 roles across Microsoft Gaming—mostly corporate and supporting functions—to organize our business for long term success.” U.S.

employees will receive exit packages that include severance, extended healthcare and outplacement services, while international employees will receive different packages dependent on their location, per Spencer.

While Spencer says there will also be “some impacts to other teams as they adapt to shifting priorities and manage the lifecycle and performance of games,” there are no video game titles, devices or “experiences” being canceled as a result of these layoffs, and no studios will be closed.