Microsoft has confirmed a new round of layoffs affecting 650 people. The new cuts amount to about 3% of the global workforce.
A report in Variety quoted Microsoft's Phil Spencer’s email that was sent to staff, with Spencer mentioning that this new post acquisition round of layoffs involves “mostly corporate and supporting functions” that are being eliminated “as part of aligning our post-acquisition team structure and managing our business”. A spokesperson later confirmed the accuracy of Variety's report but had no further comment.
Spencer said that although there would be “some impact” to some teams as they shift after the layoffs. As the positions are mostly corporate and supporting jobs, there will be no game titles or devices canceled and no studio closures.
Since the acquisition of Activision Blizzard, Microsoft has announced more than 2,500 layoffs. This doesn’t include the jobs lost when, in May, the company closed three studios under Bethesda including Arkane Austin, the team behind Redfall.
Variety confirmed that affected teams include Call of Duty: Warzone Mobile and Warcraft Rumble.
The Communications Workers of America, under which several studios under Activision Blizzard and Bethesda have unionized, criticized the latest job cuts. None of those losing their jobs were represented by CWA.
“Microsoft’s decision to lay off 650 video game workers is an extremely disappointing move from one of the world’s largest and most profitable corporations. This news comes just after Sony Interactive Entertainment subsidiary Bungie announced 220 layoffs in late July. While none of those who are losing their jobs are represented by CWA, we understand how devastating layoffs are to the workers and their families.”
Phil Spencer’s statement also noted that affected US workers would be receiving exit packages and severance, extended healthcare coverage, and help with job placement. workers in other locations may receive slightly different packages.
