But games won't be cancelled.
Xbox has laid off another 650 of its staff last week, though head Phil Spencer has said the cuts won’t lead to game cancellations.
“For the past year, our goal has been to minimize disruption while welcoming new teams and enabling them to do their best work,” Spencer wrote to staff in an internal memo obtained by The Verge.
“As part of aligning our post-acquisition team structure and managing our business, we have made the decision to eliminate approximately 650 roles across Microsoft Gaming — mostly corporate and supporting functions — to organize our business for long term success,” he continued.
“I know that this is difficult news to hear. We are deeply grateful for the contributions of our colleagues who are learning they are impacted. In the US, we’re supporting them with exit packages that include severance, extended healthcare, and outplacement services to help with their transition; outside the US packages will differ according to location.”
Spencer also wrote that “no games, devices or experiences are being cancelled and no studios are being closed as part of these adjustments today.”
Back in January of this year, Microsoft laid off 1,900 of its staff across Activision Blizzard, Bethesda, and Xbox itself. In May, it closed down three studios: Tango Softworks, Arkane Austin, and Alpha Dog Studios.
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