This week, Microsoft confirmed a new wave of layoffs at Xbox. Phil Spencer, head of Microsoft Gaming, stated that this primarily affected corporate and support staff; however, it is known that some Activision Blizzard studios were also impacted.

Recent reports revealed that the layoffs affected Call of Duty and Warcraft, major franchises that are now part of Xbox. Specifically, developers of Call of Duty: Warzone Mobile and Warcraft Rumble were affected by Microsoft’s decisions.

Teams from Call of Duty: Warzone Mobile and Warcraft Rumble impacted by Xbox layoffs

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More than 2,500 Xbox employees have been laid off this year

Phil Spencer stated that no games or projects were affected by the layoffs. He also clarified that the decision would not result in the closure of any Xbox studios. Despite this, it was revealed that developers from Call of Duty: Warzone Mobile and Warcraft Rumble were impacted by the layoffs.

Call of Duty is one of Activision Blizzard’s most important and profitable franchises, and its mobile version (Call of Duty Mobile) was a resounding success. For this reason, the company did not hesitate to bring Warzone to mobile devices to try to replicate the success of its console counterpart.

However, reports suggest that it has not fully met Activision’s expectations. The same seems to be true for Warcraft Rumble, Blizzard’s title that brought its popular franchise to mobile with mixed results.

At the time of writing, it is not clear how many developers working on these games were affected by the layoffs, nor is there any information on the consequences this will have for the projects in the near future.

Microsoft announced 650 layoffs, adding to the 1,900 earlier this year. With this, Xbox has lost 2,550 employees in 2024 following the acquisition of Activision Blizzard. Months ago, Spencer anticipated more cuts and adjustments to the brand’s strategy, which has caused uncertainty among Xbox employees.