Microsoft has announced another round of layoffs, affecting 650 employees in its Xbox division. This follows earlier cuts of 1,900 jobs across Xbox and Activision earlier this year. The layoffs are part of the company's ongoing integration of Activision Blizzard, which it acquired for $68.7 billion in October 2023.

According to an internal memo obtained by The Verge, Xbox head Phil Spencer informed employees that the layoffs will primarily impact corporate and support roles. Spencer emphasized that no games, devices, or experiences are being canceled, and no studios are being closed as part of these adjustments.

The acquisition of Activision Blizzard was finalized after a lengthy 21-month regulatory battle in the US and UK. To gain approval from the UK's Competition and Markets Authority, Microsoft agreed to sell its cloud gaming rights to Ubisoft, ensuring that Activision titles would be available on multiple game-streaming platforms.

Since the acquisition, Microsoft has closed several game studios, including Arkane Austin, Tango Gameworks, Alpha Dog Games, and Roundhouse Games.