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Layoffs have hit Microsoft once again, this time with around 650 roles eliminated in an effort to refocus on long term success.

The gaming, tech, and software giant is once again letting go of hundreds of staff members. After almost 2,000 employees were laid off earlier in the year, Microsoft layoffs hit the 2,500 mark with another 650 roles eliminated.

Brandon Moore

This comes in the same year where Microsoft’s acquisition of Activision Blizzard was successful. Their games have branched out to other consoles, Call of Duty hits Game Pass, and so many other bright spots make this seem surreal.

Over 600 supporting and corporate roles removed through more Microsoft layoffs

The announcement came on the morning of July 26, 2025. An internal memo was sent out that has since been leaked and shared all over social media. It comes from Phil Spencer, CEO of Microsoft Gaming and essential face of Xbox.

He states the goal is to organize the business for its long term success. And that Microsoft will be supporting them with extended healthcare, severance, and other services to help with their transition out of the company.

Gaming

“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.”

Microsoft’sfirst major set of layoffs in 2024were centered around Xbox, Bethesda, and Activision Blizzard. At least one Blizzard game was canceled at that time. Now, these layoffs focus on more Activision Blizzard jobs, but according to Spencer, nothing is canceled because of it.

Microsoft announces more layoffs, bringing 2024 total to over 2,500 cover image

“No games, devices or experiences are being cancelled and no studios are being closed as part of these adjustments today.”

Video games and the industry still seem to be thriving, with new titles and consoles being announced. Of course, things aren’t always black and white, especially when there are a fewhighly anticipated projects that don’t last long.

Phil Spencer announced the layoffs in an internal memo (Image via Microsoft)

Regardless, you never want to see people lose their jobs in an industry where every position matters. Where every ounce of support is necessary to the success of a piece of hardware or a game. We hope this is the last we hear of layoffs in 2024.

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