Microsoft to cut 650 jobs at its Xbox gaming unit — read the full memo from top exec Phil Spencer

Microsoft on Thursday said it is cutting 650 roles at its Xbox gaming division, in the latest major round of layoffs to hit the video game industry.

It marks the third series of redundancies in Microsoft's video game unit since the company's blockbuster acquisition of Activision Blizzard, the publisher behind the Call of Duty franchise, for $69 billion in cash.

The U.S. tech giant confirmed to CNBC that it is cutting hundreds of roles at Xbox, in "mostly corporate and supporting functions."

Bloomberg News reported the development earlier on Thursday.

In a memo obtained by CNBC, Phil Spencer, CEO of Microsoft Gaming, told employees that the firm had taken this "difficult" decision to align its post-acquisition team structure and "organize our business for long term success."

"We are deeply grateful for the contributions of our colleagues who are learning they are impacted," Spencer said in the memo.

"In the US, we're supporting them with exit packages that include severance, extended healthcare, and outplacement services to help with their transition; outside the US packages will differ according to location."

Microsoft's gaming chief added that there would be "some impacts to other teams as they adapt to shifting priorities and manage the lifecycle and performance of games."

He stressed that no games, devices or gaming experiences were being canceled, and that no studios are being closed as a result of the redundancies.

Microsoft has been cutting back on costs at Xbox in an effort to make its mammoth takeover of Activision and its broader investment drive on gaming sustainable.

The company previously purchased ZeniMax Media, the owner of Bethesda Softworks, for $7.5 billion in 2021. Bethesda publishes major gaming titles, such as