Microsoft will cut 650 positions in its video game division. This second Game Filewho obtained an email sent to employees by Xbox boss Phil Spencer.
Spencer indicated that the layoffs are a direct consequence of Microsoft's seismic merger with Activision Blizzard, the maker of Call of Duty.
“As part of aligning our post-acquisition team structure and management of our business, we have decided to eliminate approximately 650 roles across Microsoft Gaming, primarily corporate and support functions, to organize our business for long-term success,” he wrote in the email.
“I know this is difficult news to hear. We are deeply grateful for the contributions of our colleagues who are finding out they are being impacted. In the U.S., we are supporting them with exit packages that include severance, extended healthcare, and outplacement services to help them with their transition; outside the U.S., packages will vary by location.”
Microsoft laid off 1,900 video game workers in Januaryand said the cuts will allow the company to align with a “strategy and execution plan with a sustainable cost structure” after spending $68.7 billion on its acquisition of Activision Blizzard.
The latest cuts have seen Microsoft lay off about 2,550 people in its gaming division since the start of the year. It also ZeniMax studios closed Arkane Austin, Alpha Dog Games and Tango Gameworks, the latter eventually purchased from Krafton.
Echoing a statement released in January, Spencer said the latest cuts prioritize “sustainable future growth” and will allow Microsoft to “better support our studio teams and business units.”
“Separately, as part of corporate governance, there are some impacts to other teams as they adapt to changing priorities and manage the lifecycle and performance of games. No games, devices, or experiences will be canceled, and no studios will be closed as part of these adjustments today,” the email continues.
“Throughout our team's history, we've had great moments and we've had difficult ones. Today is one of those difficult days. I know that dealing with more changes like this is tough, but even in the most difficult moments, this team has been able to come together and show each other care and kindness as we work to continue to give our players the best possible experience. We appreciate your support as we navigate these changes and thank you for your compassion and respect for one another.”
The game developer has contacted Microsoft for comment.