JUST IN: Microsoft announces another major layoff of Xbox employees

Tech giant Microsoft has announced the firing of 650 employees from its Xbox division, marking the second major layoff of the year in its gaming arm. The latest development comes after a previous 1,900 job cuts in January 2024.

The affected employees received the information through an internal memo from Microsoft’s gaming chief, Phil Spencer. The latest round of layoffs is set to predominantly affect corporate and support roles in the gaming division, as reported by The Verge.

Spencer assured employees that no devices, games or experiences are being cancelled, and that no studios are set to be closed because of the job cuts. The decision is part of broader restructuring efforts aimed at streamlining the company’s gaming operations.

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Corporate layoffs making global headlines regularly

The internal memo states that the latest job cut announcements can affect Xbox employees in both the US and internationally. For people in the US, Microsoft is offering exit packages that include severance pay, extended healthcare benefits and outplacement services.

Exit packages for employees outside the US can differ based on local guidelines and policies. During the January 2024 layoffs at Microsoft, several high-profile figures such as Mike Ybarra also took a significant hit.

Since 2022, corporate layoffs have been making global headlines almost every day. Several companies hired a number of employees during the COVID pandemic to address an increase in demand. But in the subsequent months, as the demand receded, layoffs started.