Microsoft is laying off approximately 650 employees from its gaming division, led by Xbox CEO Phil Spencer, as part of an effort to restructure teams following the acquisition phase. This decision comes after 1,900 layoffs earlier in the year, reflecting ongoing challenges faced by the gaming industry. Spencer reassured employees that there will be no cancellations of games, devices, or studios. The majority of the affected roles are in corporate and support functions, and Microsoft is providing exit packages for impacted staff.

nWhat does the Microsoft layoff mean for Xbox and gaming?

The layoffs indicate a significant restructuring within Microsoft's gaming division, but the company emphasizes its commitment to ongoing game development and support for its studios. The aim is to streamline operations to foster sustainable growth moving forward.

Microsoft's gaming division encompasses a wide range of products and services, including the Xbox consoles and Xbox Game Studios. The company has made substantial investments in expanding its gaming library and enhancing its gaming subscription service, Xbox Game Pass, positioning itself within the competitive gaming market.