Microsoft is making further cuts in its gaming division. Xbox CEO Phil Spencer sent out a letter to employees saying that about 650 employees would be laid off, but “no games, devices, or experiences are being canceled.” This was reported by The Verge.

The new wave of layoffs also relates toMicrosoft ‘s $68.7 billion deal with Activision Blizzard. Spencer wrote in the letter that these layoffs are part of the alignment of the team structure and business management after the acquisition of Activision Blizzard.

“With these changes, our corporate and supporting teams and resources are aligned for sustainable future growth, and can better support our studio teams and business units with programs and resources that can scale to meet their needs. Separately, as part of running the business, there are some impacts to other teams as they adapt to shifting priorities and manage the lifecycle and performance of games. No games, devices or experiences are being cancelled and no studios are being closed as part of these adjustments today,” by writing Spencer.

At the beginning of 2024, Microsoft announced the dismissal of 1900 employees from the gaming division, which was also the result of the deal with Activision Blizzard. Subsequently, it became known that the company was closing several Bethesda studios, including Tango Gameworks, but the latter managed to find a new home under the wing of Krafton.