Microsoft is laying off 650 employees from its Xbox division, primarily affecting corporate and support roles, as part of efforts to streamline operations following its $69 billion acquisition of Activision Blizzard. This marks the third wave of layoffs in 2024, bringing the total to 2,550 jobs cut this year. Xbox chief Phil Spencer assured that no games or studios would be canceled or closed due to these layoffs. The gaming industry has been struggling with increased development costs and slow growth, prompting similar job cuts at other major companies like Sony and Riot Games. Affected employees will receive severance, extended healthcare, and outplacement services. The layoffs aim to ensure long-term success and align the team structure post-acquisition.