Microsoft Announces Large-Scale Workforce Restructuring in Gaming Division

Microsoft is set to undergo a significant workforce restructuring, as announced by Phil Spencer, CEO of Microsoft Gaming and head of the company’s game division.

According to a report by American media outlet CNBC on the 12th (local time in the US), Phil Spencer informed internal employees of the decision to reduce the workforce in a message.

In the message, Phil Spencer stated, “Following the acquisition by the company, we have made some difficult decisions to align the team structure at the company and ensure regular success.” He also reassured employees that “there will be no cancellation of games or hardware gameplay services due to layoffs, and there will be no studio closures.”

The layoffs are expected to affect around 650 people, marking the third round of workforce reductions since Microsoft acquired Activision Blizzard for $69 billion. This move follows the closure of several game studios in May, including Arcane Austin, Tango Gameworks, and Alpha Dog.

This restructuring is part of Microsoft’s efforts to align its team structure and ensure continued success in the gaming industry.