Microsoft said it will cut 650 jobs at its Xbox unit, its third layoff this year, as it tries to control costs and integrate its $69 billion (roughly Rs. 5,79,115 crore) acquisition of Activision Blizzard, Bloomberg reported on Thursday.
The first half of the year has seen the gaming industry see massive layoffs, studio closures and project cancellations as gamer spending slowly recovers after player engagement peaked during the pandemic.
The report quoted a memo sent to employees by Xbox CEO Phil Spencer saying that the layoffs will mainly affect the company and support functions.
As part of these changes, no games, devices or experiences have been canceled and no studios have been closed, the report said, citing the memo.
Microsoft and Xbox did not immediately respond to Reuters’ request for comment.
Microsoft last year completed a deal for Activision Blizzard, which has bolstered its presence in the video game market with best-selling titles such as “Call of Duty” to better compete with industry leader Sony.
The tech giant said in January it would lay off 1,900 employees at Activision Blizzard and Xbox.
In May, Xbox shut down several game studios, including Arkane Austin.
Research firm Newzoo last month cut its annual growth forecast for the global video game market, citing relatively few game launches planned for this year and poor console sales.
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