An internal memo sent by Xbox boss Phil Spencer to staff says 650 workers will be cut by company, owned by Microsoft.

The memo has reportedly been viewed by The Verge.

“The cuts are related to the Activision Blizzard deal, and Spencer makes it clear in his email that ‘no games, devices or experiences are being cancelled’ and no studios are being closed as part of the layoffs today,” the site reported.

“As part of aligning our post-acquisition team structure and managing our business, we have made the decision to eliminate approximately 650 roles across Microsoft Gaming – mostly corporate and supporting functions – to organise our business for long term success.”

Spencer said “No games, devices or experiences are being cancelled and no studios are being closed as part of these adjustments today”. Within that sentence is potentially quite a lot of wriggle room for downgrading or downsizing in those areas, but it’s not made clear if this may occur.

 

Indiana Jones and the Great Circle game on Xbox.

 

In January Microsoft laid off 1,900 workers, mostly from Activision Blizzard, but also from Xbox and Zenimax/Bethesda.

“For the past year, our goal has been to minimise disruption while welcoming new teams and enabling them to do their best work,” Spencer said in the memo.

“As part of aligning our post-acquisition team structure and managing our business, we have made the decision to eliminate approximately 650 roles across Microsoft Gaming – mostly corporate and supporting functions – to organise our business for long term success.”

He acknowledged it was “difficult news to hear” and said the hundreds to be left jobless will receive “exit packages that include severance, extended healthcare, and outplacement services to help with their transition; outside the US packages will differ according to location”.