Microsoft lays off 650 staff at Xbox gaming division

Microsoft is laying off 650 more people from the staff of its Xbox Games division, according to new reports. Phil Spencer allegedly confirms the number in a memo sent out to staff today, clarifying that the jobs are “mostly corporate and supporting functions” and that they were cut in order to set the business up for long-term success. This is the second major round of layoffs from the company, and puts the total number of cut jobs for Microsoft in 2024 at about 2,550.

GameFile and Bloomberg both reported on the layoffs, while IGN obtained a copy of Spencer’s memo to staff. In the latter, Spencer says, “With these changes, our corporate and supporting teams and resources are aligned for sustainable future growth, and can better support our studio teams and business units with programs and resources that can scale to meet their needs. Separately, as part of running the business, there are some impacts to other teams as they adapt to shifting priorities and manage the lifecycle and performance of games.”