An internal memo from Xbox head Phil Spencer, obtained by IGN, confirms that the layoffs primarily affect corporate and support functions rather than game studios or projects.
Spencer noted that this decision is related to the reorganization of the business after Activision Blizzard’s acquisition for $69 billion in 2023. These are not the first layoffs: 2,550 employees have been laid off since the deal.
In the letter, Spencer assured that the games, devices, and studios would continue to operate and that no closures were planned. Despite this, the decision is causing dissatisfaction among employees as the company’s management remains outside of the discount area.
The new layoffs are part of a larger trend in the gaming industry, which has already seen significant layoffs, including the closure of studios like Tango Gameworks and Arkane Austin.
Source: Ferra
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