Microsoft has laid off 650 more employees from its Xbox Games division, with Phil Spencer confirming the number in a recent memo to staff. The layoffs were predominantly in corporate and supporting functions in order to set the business up for long-term success. The total number of job cuts for Microsoft in 2024 now stands at about 2,550.
What’s Happening & Why This Matters
The Xbox games division has suffered several such cuts and layoffs so far this year. This is Microsoft’s second major round of layoffs following the acquisition of Activison Blizzard King, with previous cuts in January and May. Spencer stated that the company was “aligning our post-acquisition team structure” and assured that no games, devices, experiences, or studios are being cancelled or closed as part of these adjustments.
GamesBeat Next is an upcoming event in San Francisco on October 28th and 29th that aims to connect the next generation of video game leaders. These latest layoffs bring the total layoffs in 2024, including those outside of Microsoft, to about 12,000.
TF Summary: What’s Next
Microsoft is following the industry trend of trimming its gaming staff that is in line with its competitors’ practices. The gaming industry has faced numerous layoffs in 2024 affecting developers, studios, and accessory makers. This indicates a challenging sector trend and the exact bottom line is uncertain. However, this trend is juxtaposed with Sony’s announcement of the PlayStation 5 Pro model, set to be released in November 2024.