Microsoft has implemented an additional reduction of 650 employees within its gaming division

Microsoft has disclosed another round of job cuts, impacting 650 staff members within its gaming division.

According to IGN, Xbox leader Phil Spencer informed employees through a memo that these layoffs primarily affect corporate and support areas. He assured that this will not lead to the cancellation of any games, devices, or experiences, nor the closure of any studios.

Spencer mentioned that aligning their structure post-acquisition and ensuring the business is set up for long-term success were key reasons behind the layoffs.

He further noted, "In the course of managing the business, adjustments are necessary for various teams to address new priorities and oversee the development and efficiency of games."

These organizational adjustments aim to position Microsoft's corporate and support teams to better assist studio teams with scalable resources and programs for future growth.

GamesIndustry.biz has contacted Microsoft for additional comments.

Earlier this year, the company reduced its gaming division workforce by 1,900. In May, four Bethesda studios, including Tango Gameworks and Arkane Austin, were reportedly shut down.

Krafton acquired Tango Gameworks along with the Hi-Fi Rush IP as part of a strategic partnership last month.

These developments occur in the wake of Microsoft's acquisition of Activision Blizzard for $68.7 billion completed in October 2023, which faced challenges in the UK, EU, and US regulatory environments.