Microsoft terminates another 650 staff from its Xbox business, after Sony announces PS5 Pro

It has barely been over 24 hours since Sony announced its beefed-up Xbox-killing PlayStation 5 Pro console, and now news has leaked that Microsoft is firing another 650 staff from its Xbox gaming division.

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In an email memo sent by Xbox boss Phil Spencer and "obtained" by IGN, Spencer explained: "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".

The cull isn't as drastic as the 1900+ workers that Xbox laid off across Activision, Bethesda, and Xbox Games Studios earlier this year, but it's another 650+ people from a division that can't compete with the PS5 Pro, and in the months leading into the holiday season.

The email from Spencer continues:

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 U.S., we're supporting them with exit packages that include severance, extended healthcare, and outplacement services to help with their transition; outside the U.S. 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.

• Read more: Xbox lays off 1,900 workers across Activision, Bethesda, and Xbox Game Studios teams

Throughout our team's history, we have had great moments, and we have had challenging ones. Today is one of the challenging days. I know that going through more changes like this is hard, but even in the most trying times, this team has been able to come together and show one another care and kindness as we work to continue delivering for our players. We appreciate your support as we navigate these changes and we thank you for your compassion and respect for each other".