Microsoft Reportedly To Axe Another 650 Jobs From Video Gaming Division

(RTTNews) - Microsoft Corp. (MSFT) is planning to lay off approximately 650 workers from its gaming division, primarily affecting corporate and support functions staff, according to several reports.

The announcement was made by Xbox Chief Phil Spencer in a memo to the staff, which was first reported by Game File.

The decision is part of Microsoft's efforts to align the post-acquisition team structure and manage the business, following its acquisition of Activision Blizzard (ATVI) for $69 billion in 2023.

The tech giant assured that the departing employees will be offered exit packages, including severance, extended healthcare, and outplacement services to help with their transition. Notably, the packages may vary based on the employees' locations.

Earlier this year, Microsoft had laid off 1,900 employees from Activision Blizzard, Bethesda, and Xbox due to a slowdown in growth in the gaming industry.

Currently, Microsoft's stock is trading at $420.96, down 0.49 percent on the Nasdaq.