Microsoft has laid off another 650 employees from its Xbox division, marking the latest round of job cuts linked to its acquisition of Activision Blizzard. According to an internal memo seen by The Verge,

Redmond-based Microsoft Corp. (Nasdaq: MSFT) has laid off about 650 employees from its gaming division, or 3% of the department.

The terminations mark the latest round of job cuts for game employees since the software giant’s purchase of Activision Blizzard.

For the US employees, the company is offering exit packages that include severance pay, extended healthcare benefits, and outplacement services to aid in their transition to new jobs.

Microsoft has undertaken another round of gaming layoffs, this time cutting 650 employees from their Xbox and Activision Blizzard divisions.

Microsoft continued the cost-cutting in its Xbox and video games division Thursday morning, laying off another 650 employees.

The Xbox division layoffs at Microsoft may have several effects on the gaming industry. If Xbox's development capacity is reduced, there may be less competition, giving rivals like Sony or Nintendo a more significant market share.

The Communications Workers of America (CWA) has heavily criticized Microsoft’s announcement of a further 650 layoffs from its gaming business, with one union formed to represent Activision Blizzard’s World of Warcraft team calling the cuts “heartless.

Phil Spencer, CEO of Microsoft Gaming, communicated the news to employees in a memo, with a message that the layoffs are necessary to support the company's long-term success.