According to the company, cuts are part of a “structure alignment”; Company has already fired 10,000 people in just over a year

The latest layoff was recorded this week. Microsoft has just dismissed 650 people within the company’s gaming segment. The information is from The Verge, which had access to an internal memorandum released on Thursday (12) by Xbox boss Phil Spencer.
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According to the executive, the action is “part of the alignment of the structure of our post-the-the-way team and the management of our business”. The acquisition cited is that of Activision Blizzard in October last year. This is the biggest agreement in the history of games-which cost Bill Gates’s company nearly $ 70 billion.
At first, Microsoft had fired 1900 employees from the acquired company – this in January this year. Now, with this new wave, Xbox has cut over 2,500 jobs since completing the purchase of the game developer.

Projects – and Studios – continue intact
- Spencer thanks in the email for the services provided and says this is a difficult news.
- It makes it clear that “no game, device or experience is being canceled.”
- And that no studio is being closed as a result of the latest layoffs.
- This phrase reassures the market a little.
- This is because Microsoft has already closed 4 studios recently, including Arkane Austin (who did Redfall), Tango Gameworks ( Hi-fi rush) and Alpha Dog ( Mighty doom).
- About dismissed employees, Phil Spencer wrote that they are all receiving support from the company.
- Support that includes indemnity, extended health care and professional relocation services.

Remember that all these dismissals are only part of Microsoft’s gaming industry. The company also recently promoted mass layoffs in other areas. In all, there were more than 10,000 vacancies less than 2023 here. You can read more about it in this other text of Digital Look.
The information is from The Verge.