Microsoft (MSFT) reportedly is laying off 650 employees from its Xbox division, the company's third round of unit cuts since closing its 澳洲幸运5官方开奖结果体彩网:$69 billion acquisition of Activision Blizzard last October.

According to a memo from Xbox chief Phil Spencer, the affected employees are "mostly corporate and supporting functions," rather than game development, per Bloomberg. "No games, devices or experiences are being cancelled and no studios are being closed as part of these adjustments today," Spencer added. 

Microsoft did not immediately respond to an Investopedia request for comment.

Video Game Developers Struggle

Microsoft has significantly trimmed its Xbox division this year. In January, Microsoft said it was 澳洲幸运5官方开奖结果体彩网:laying off 1,900 workers in its gaming sector, or about 9% of the unit. In May, Microsoft shuttered multiple Bethesda studios acquired along with its purchase of ZeniMax in 2021, as first reported by IGN.

The company is far from alone in the video game industry. Take-Two Interactive Software (TTWO), the company behind the "Grand Theft Auto" franchise, closed to of its subsidies in May, according to Bloomberg. Just this month, Sony (SONY) said it was removing first-person shooter "Concord" from Playstation 5 consoles and PCs just two weeks after the game underperformed.

Microsoft shares edged higher t𝕴o $424.51 Thursday afternoon. They are up about 13% in 2024.