Read: Xbox chief’s leaked memo on hundreds of job cuts in Microsoft’s gaming division

Microsoft has announced that it will layoff around 650 employees from its Xbox gaming division. The move, according to the Phil Spencer’s internal memo, will mainly affect corporate and support roles.
Also, Spencer has highlighted that the move comes in order to streamline the operations and restructuring after the $68.7 billion Activision Blizzard acquisition last year.
Read Phil Spencer’s memo:

For the past year, our goal has been to minimize disruption while welcoming new teams and enabling them to do their best work. 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 US, we’re supporting them with exit packages that include severance, extended healthcare, and outplacement services to help with their transition; outside the US packages will differ according to location.

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. 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.