Microsoft is laying off another 650 workers in its gaming division - this is in addition to the 1,900 laid off in January

Microsoft is set to lay off nearly 650 employees from its gaming division, as announced by Xbox leader Phil Spencer in a letter to staff.

According to Game File, Spencer referred to the day as "one of the most challenging." He explained that the decision to reduce the workforce was made as part of "aligning the team structure following the acquisition and management of the business," as well as for "organizing the business for long-term success."

The layoffs will primarily affect corporate and support functions. A source familiar with the situation indicated that the cuts will mostly impact employees from Activision Blizzard. Meanwhile, leaders of Xbox business units and related game teams will not be affected.

Spencer noted that the company will not be closing any game studios as part of these layoffs. There are also no plans to cancel the development of games, devices, or experiences. However, certain teams will undergo changes due to "adapting to new priorities and managing the lifecycle and performance of games."

This is not the first round of layoffs this year for Microsoft Gaming. In January, the company let go of around 1,900 workers from teams at Activision Blizzard, Zenimax, and Xbox. Later, the studios Arkane Austin and Tango Gameworks were shut down, although the latter was subsequently revived by Krafton.

In his letter, Spencer expressed gratitude for the contributions of his colleagues and mentioned support for the laid-off workers. They will receive "severance packages," which include a severance payment, extended health insurance, and employment services in the U.S. He added:

"I know that going through such changes is difficult, but even in the toughest times, this team has been able to come together and show care and kindness to one another while continuing to work for our players."

Source: Gamesradar