Microsoft is laying off about 650 more employees of its gaming division, IGN writes, citing a memo from Xbox CEO Phil Spencer.  

In January 2024, the corporation cut 1.9 thousand Activision Blizzard and Xbox employees. At the same time, the president left Blizzard Mike Ibarra and chief designer Allen Adam. Layoffs then affected about 8% of Microsoft Gaming.

The announced cuts led to the closure of two offices of Toys for Bob studio: 86 employees in Novato and 76 employees in Foster City lost their jobs. The rest of the Toys for Bob staff was transferred to the remote location.

In May, Microsoft closed four Bethesda studios: Arkane Austin, Tango Gameworks, Alpha Dog Studios and Roundhouse Games. By the end of the summer, Krafton bought Tango Gameworks from Microsoft.

In the latest memo, Spencer said that the layoffs are related to the Activision Blizzard deal. He assured that in this regard, Microsoft will not cancel the release of games and devices. The corporation also has no plans to close the studios, Spencer assured.

The reduction will mainly affect corporate employees and support staff. This should allow Microsoft to "organize its business for long-term success," said the head of Xbox.

Laid-off workers will receive severance pay, extended medical care and job placement assistance. Outside the United States, aid packages will vary.