Xbox announces more layoffs, but promises not to cancel games or close studios

Wave dismissals the video game industry never stops and it’s time again XboxPhil Spencer, head of Microsoft Gaming, said hundreds of jobs would be cut, though he insisted the move would not result in games being cancelled or studios being closed.

In a memo sent to the company’s employees, published IGN And EdgeSpencer explained that 650 jobs to be cut. Those affected by the new Xbox layoffs are mostly in corporate and support roles, the manager said. He also said the staff cuts are related to the acquisition of Activision Blizzard and a reorganization of Microsoft’s video game business for long-term success.

“Throughout our history as a team, we’ve had great moments, but we’ve also had tough times. Today is one of those tough days,” the Xbox boss said in announcing the new layoffs. He also noted that the impact of the decision would be felt across other teams in the company as they shift priorities, manage the lifecycle, and manage game performance.

However, he stressed that there are no plans to cancel games or close studios, at least for now. “No games, devices or experiences will be cancelled, and no studios will be closed as part of today’s changes.”Spencer said.

More layoffs at Xbox, which has already cut more than 2,500 jobs in 2024 alone

Xbox found itself in the eye of a storm earlier this year after layoffs were announced 1900 employees in January. The layoffs affected Microsoft Gaming itself, as well as ZeniMax Media (Bethesda) and Activision Blizzard. In fact, Blizzard Entertainment was one of the hardest hit companies, as its layoffs included the departure of Mike Ybarra, its president, and Allen Adam, the studio’s co-founder and head of design.

Meanwhile, unrest intensified in May when news broke that several Bethesda studios were closing. Among them, Arcane Austin (red waterfall), Alpha Games with Dogs (Mighty DUM) And Tango Gameworks (HiFi Rush). The last one was the most remarkable, because HiFi Rush It was a surprise success for Xbox, and it has just moved on to PlayStation. Last month, Krafton, the company behind PUBGbought Tango Gameworks and saved it from closure.

In connection with the layoffs announced today, Xbox to cut at least 2,550 jobs in 2024 alone. It is unclear whether the company plans to continue the shift to scissors as part of a reorganization of its business following the purchase of Activision Blizzard, which was completed last October. A few months ago, Phil Spencer argued that the layoffs in the video game industry were a response to rising development costs and the lack of growth in the console market.

“I have to run a sustainable business within the company and grow, and that means sometimes I have to make tough decisions that, frankly, aren’t decisions I like, but they’re decisions that somebody has to make,” the Xbox leader said in June when consulted about the layoffs.

Video game industry suffers from layoffs

Of course, Xbox This is not the only company in the industry. which has made several layoffs this year. Other notable cases in 2024 include Bungie (Fate), Riot Games (valiant), Take-Two Interactive (GTA) and PlayStation.

This year, the industry has already significantly exceeded the 2023 figures, which was quite traumatic in terms of the workforce. This is due to numerous justified layoffs and reorganization of teams after excessive growth during the pandemic.

Taking the follow-up steps you take Layoffs in the gaming industryadded to those announced by Xbox today, In 2024, 12,190 layoffs were recorded.. This already exceeds 10,500 in 2023 and 8,500 in 2022.