Microsoft lays off over 650 Xbox employees.

Microsoft’s gaming division laid off approximately 650 employees on September 12 Thursday as Xbox chief Phil Spencer announced in an internal memo. This decision was made to align the team’s structure after a recent acquisition and to manage the business for long-term success. As per The Verge, the job cuts mainly affected corporate and supporting roles, rather than game development.

Spencer stated that Microsoft Gaming Division is dismissing approximately 650 roles as part of restructuring efforts. ” we have decided to eliminate approximately 650 roles across Microsoft Gaming — mostly corporate and supporting functions — to organize our business for long-term success. This move aims to streamline the team structure and prepare the business for long-term success,” Spencer said, as quoted by The Verge.

Also, read| Apple Lays Off 100 Workers From Its Online Service Group: Report

He wrote in the internal memo to the employees that this news is difficult to hear and expressed gratitude for the contributions of the colleagues who are impacted. He confirmed that the company is providing severance packages and outplacement support to help their transition. According to Spencer, these changes will enable the teams to work more effectively together and support the company’s growth. He assured that no games, devices, or experiences will halt and no studios are closing on account of these layoffs.

Since global layoffs in several departments and companies are escalating tensions among employees, on Wednesday, Reuters reported that Samsung Electronics is planning to cut down its workforce to 30%  in some divisions. It was said that the brand has instructed its subsidiaries worldwide to dwindle sales and marketing staff strength furloughing 15% of employees from the department. As per the report,  Samsung will dismiss about 30% of its workers in the administrative sector as well.

This workforce cut is said to be implemented by the end of 2024 which may reduce the staff across the US, Asia, Africa and Europe as a part of a global headcount reduction in the company. It is still vague how many people would be affected by these layoffs since the reason and details of this massive cut remained confidential and uncertain.

Also, read| Samsung Electronics Prepares For A Global Job Cut: Report