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The Esports Advocate
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These cuts primarily target corporate and supporting roles across the Xbox business, Activision Blizzard, and various internal game studios.
Key reduction. Microsoft Gaming is cutting approximately 650 roles, primarily within corporate and supporting functions.
Microsoft Gaming is set to reduce its workforce by approximately 650 positions, as confirmed in an internal memo from CEO Phil Spencer. These cuts primarily target corporate and supporting roles across the division, which encompasses the Xbox business, Activision Blizzard, and various internal game studios. This reduction follows a significant earlier round of layoffs in 2024 that saw roughly 1,900 employees depart the company.
The primary objective of these organizational changes is to streamline operations and align the company’s structure following the $68.7 billion acquisition of Activision Blizzard. By eliminating redundant roles and responsibilities, the company aims to improve long-term financial performance and sustainability. Despite the scale of the layoffs, leadership has stated that no current game projects are being canceled and no additional studios are slated for closure at this time.
Impacted employees in the United States will receive severance packages, extended healthcare, and outplacement services, with international support varying by region. These ongoing workforce adjustments reflect a broader industry trend of cost-cutting and structural consolidation as major gaming entities navigate the post-acquisition integration phase and shifting market priorities.
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