Microsoft lays off another 650 people in games

Microsoft continued the cost-cutting in its Xbox and video games division Thursday morning following its $68.7 billion Activision-Blizzard acquisition, laying off another 650 employees.

Phil Spencer, the Microsoft Gaming CEO, told employees that the latest cutbacks do not signal the cancelation of any additional games, devices, or experiences. He said no further Microsoft games studios are being closed.

“As part of aligning our post-acquisition team structure and managing our business, we have made the decision to eliminate approximately 650 roles across Microsoft Gaming—mostly corporate and supporting functions—to organize our business for long term success,” Spencer wrote in the internal memo, published by Bloomberg.

Previous cuts by the Xbox division included the layoff of 1,900 employees in January of this year. In May, Microsoft said it would be closing some of the Bethesda studios that were part of its previous ZeniMax Media acquisition.

Microsoft cut jobs across the company in July, following the end of its fiscal year.