Microsoft is laying off 650 more Xbox staff members, Phil Spencer says the decision was made "to organize our business for long term success"

Master Chief on the cover of Halo Infinite

(Image credit: 343 Industries)

Microsoft is laying off another 650 employees from its Xbox gaming workforce.

As reported by IGN, Microsoft Gaming CEO Phil Spencer sent a memo to staff members today, September 12, informing them that the decision was made to "organize our business for long term success" and will mostly affect corporate and support functions.

"For the past year, our goal has been to minimize disruption while welcoming new teams and enabling them to do their best work," Spencer wrote. "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 organize our business for long term success.

"I know that this is difficult news to hear. We are deeply grateful for the contributions of our colleagues who are learning they are impacted. In the U.S., we’re supporting them with exit packages that include severance, extended healthcare, and outplacement services to help with their transition; outside the U.S. packages will differ according to location."

Spencer explained that the changes will also impact other team "as they adapt to shifting priorities and manage the lifecycle and performance of games", but confirmed that no games, devices, or experiences have been canceled, and no studios will be closing.

"With these changes, our corporate and supporting teams and resources are aligned for sustainable future growth, and can better support our studio teams and business units with programs and resources that can scale to meet their needs," the Xbox boss said.

"Separately, as part of running the business, there are some impacts to other teams as they adapt to shifting priorities and manage the lifecycle and performance of games. No games, devices or experiences are being cancelled and no studios are being closed as part of these adjustments today."

Spencer continued, writing that today is a challenging day and that the changes will be hard, "but even in the most trying times, this team has been able to come together and show one another care and kindness as we work to continue delivering for our players."

"We appreciate your support as we navigate these changes and we thank you for your compassion and respect for each other," Spencer added.

Earlier this year, Microsoft laid off 1,900 members of staff across Xbox, Activision Blizzard, and ZeniMax teams so it could align itself "on the best opportunities for growth" following its $69 billion acquisition of Activision Blizzard last year.

This was the beginning of a string of other job cuts as Microsoft later shuttered four Bethesda Softworks studios including Hi-Fi Rush developer Tango Gameworks, Redfall's Arkane Austin, Roundhouse Studios, and Alpha Dog Games.