Microsoft Cuts 650 Xbox Jobs in Third Round of 2024 Layoffs
On September 12, 2024, Microsoft announced it would lay off 650 employees from its Xbox gaming division, marking the third major round of job cuts this year. The layoffs affect various teams within Xbox, including game development and support functions, as part of a broader restructuring effort aimed at streamlining operations and focusing on key strategic priorities.
According to an official statement from Microsoft, the decision was driven by the need to align resources with evolving market demands and to accelerate innovation in gaming services and content. The company emphasized that the layoffs are part of a multi-phase plan initiated earlier in 2024, following two previous rounds that collectively reduced Xbox staff by over 1,200 employees.
The affected employees will receive severance packages and support for career transition. Microsoft reaffirmed its commitment to investing in gaming, highlighting ongoing projects such as cloud gaming expansion and new exclusive titles.
This latest round of layoffs comes amid a challenging environment for the video game industry, with many companies adjusting workforce sizes in response to shifting consumer behaviors and economic pressures.
Sources: Microsoft official announcement (September 12, 2024), The Verge, GeekWire
Image credit: Microsoft Xbox official press kit
