Microsoft has announced plans to lay off 650 employees from its Xbox division, according to a recent report by Bloomberg News. This marks the third round of layoffs by the company this year, states the report.

The Bloomberg report suggests these cuts are being made to offset the financial impact of Microsoft's $69 billion acquisition of Activision Blizzard.

The layoffs will primarily affect employees in the corporate and support sectors, with the information reportedly revealed through a memo sent to staff by Phil Spencer, CEO of Microsoft Gaming.

A January 2024 article from The Verge had previously reported that Microsoft was considering laying off 1,900 employees from its Blizzard and Xbox divisions. At that time, Microsoft Gaming employed approximately 22,000 people.

In May, Xbox closed several game studios, including Arkane Austin, as the gaming industry faces increasing development costs and sluggish growth in demand for new titles.