650 employees at Xbox’s games unit will be let go in Microsoft’s third round of layoffs this year, Bloomberg reported first. The cuts arrive following the company’s $69 billion USD acquisition of Activision Blizzard with Microsoft now reportedly attempting to lower costs.
According to a memo sent to staff by Microsoft Gaming CEO Phil Spencer, the cuts will largely impact “mostly corporate and supporting functions,” per Bloomberg. He noted that no studios will be closed nor will any games be canceled as part of the layoffs.
In the memo, Spencer said that the shuffling would serve to allow Microsoft Gaming to “organize our business for long term success.”
In January, the company cut nearly 2,000 employees across both Xbox and Activision Blizzard, equating to 8% of the Microsoft Gaming workforce. It then shuttered several studios in May, including Alpha Dog and Tango Gameworks.