Microsoft Gaming's bloodletting after the acquisition continues with 650 more employees set to be laid-off for'sustainable growth'

Microsoft will soon, depending when this latest round is implemented, have let go of over 2,500 staff since purchasing Activision Blizzard at $69 billion.

IGN shared an internal memo that stated 650 workers will be laid off across "mostly corporate functions and supporting functions". In an email to staff, Xbox head Phil Spencer explained that the removals are "part of aligning and managing our post-acquisition team structures."

Spencer continues: "I understand that this is a difficult news to hear. We are deeply grateful for our colleagues' contributions who are learning that they are impacted." In the US, exit packages are available that include severance pay, extended healthcare and outplacement support to assist with their transition. Packages outside the US will vary depending on location.

Spencer mentions that, after stating that Microsoft's "corporate teams and supporting resources are aligned with sustainable future growth" as a result of the cuts, which again, amount to 650 jobs, "no games or devices, experiences, or studios are cancelled today as part of these adjustment."

It's ironic to talk about sustainable growth following a $69 billion purchase, especially after the acquisition was followed by 1,900 layoffs in Xbox's gaming division, the closure of four game studios, including Arkane Austin, and Tango Gameworks, in May - the latter of which Krafton has picked up - and a Bloomberg article that said more cuts would be coming, in which Matt Booty compared the company's stretched out staff to "peanut-butter on bread."

Spencer concluded his memo with more platitudes. "I know going through changes like this is difficult, but even in these trying times, our team has been able come together and show each other care and kindness while we work to continue to deliver for our players." We appreciate your support and thank you for showing compassion and respect to each other as we navigate through these changes.

It's an especially grim time for the entire industry. Over 16,000 developers have lost their jobs between January 2023 and January 2024. This number has continued to grow since. Restructuring, of course, isn't unheard of, especially after large acquisitions--sometimes you'll wind up with duplicate positions, particularly in central roles like the corporate and supporting ones mentioned here. Even if that's the case, it's an extra sting after the brutal beginning to the new Microsoft-owns-Blizzard world.

I can't shake this feeling that we're in a 'time is flat circle' land. In terms of the games industry as a whole, the slow demise of Embracer and the bleeding of Concord and Suicide Squad, large-scale purchases and optimistic live service ventures, leading to a rush of trimming the fat...