Microsoft lays off another 650 Xbox employees as part of its Activision deal

After slashing 1,900 jobs across Xbox and Activision earlier this year, Microsoft is laying off another 650 employees, according to an internal memo seen by The Verge. The cuts are again related to its Activision Blizzard acquisition and will mostly affect corporate and supporting functions, Xbox head Phil Spencer told employees.

“We have made the decision to eliminate approximately 650 roles across Microsoft Gaming… to organize our business for long term success,” Spencer wrote. “No games, devices or experiences are being cancelled and no studios are being closed as part of these adjustments today.”

Microsoft completed its $68.7 billion purchase of Activision Blizzard in October 2023, following a 21-month battle with regulators in the US and UK. To clear the deal with the UK’s Competition and Markets Authority, Microsoft agreed to sell its cloud gaming rights to Ubisoft so that titles will appear on multiple game-streaming services.

Since then, the company has closed multiple game studios, including Redfall developer Arkane Austin, Tango Gameworks, Alpha Dog Games and Roundhouse Games.