A recent report revealed that Microsoft is undergoing layoffs in its gaming division, with approximately 650 employees affected. This news comes shortly after the company previously laid off 1,900 employees in the gaming division following its acquisition of Activision Blizzard for $68.7 billion.
According to a memo from Xbox chief Phil Spencer, these latest job cuts are connected to the acquisition and the restructuring of the post-acquisition team. The memo states that the decision was made to eliminate roles in corporate and supporting functions to ensure long-term success for Microsoft Gaming.
Despite these layoffs, Spencer reassured employees that no games, devices, or experiences are being canceled, and no studios are being shut down. This announcement follows previous closures of game studios like Tango Gameworks and Arkane Austin after the last round of layoffs.
As of now, Microsoft has not provided any comments in response to requests for more information from TechCrunch.