In a year that has seen tons of layoffs, the staff bleeding continues at Microsoft. According to Windows Central, Xbox cuts 3% of its workforce, as 650 jobs were furloughed September 11th, as a a continued path of their corporate restructuring since the purchase of Activision Blizzard. The total number of layoffs at Xbox has now hit 2,550 since the beginning of 2024.

Microsoft Gaming CEO Phil Spencer sent an internal email outlining the cuts, detailing that the moves will not involve any cancellation of game projects or hardware. Job removal positions across Bethesda ZeniMax, Xbox Game Studios, Activision, and Blizzard include marketing, human resources, and finances. The roles have been consolidated to "reduce redundancies".

"For the past year, our goal has been to minimize disruption while welcoming new teams and enabling them to do their best work," Spencer's email reads. "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.

I know that this is difficult news to hear. We are deeply grateful for the contributions of our colleagues who are learning they are impacted. In the US, we’re supporting them with exit packages that include severance, extended healthcare, and outplacement services to help with their transition; outside the US packages will differ according to location."

While Xbox gaming hardware has seen a dip in 42%, operating costs and revenue from their recent Activision acquisition has led to a boost in content sales, so there's a slim chance Microsoft has little issues with this model. 

SOURCE: Windows Central