Microsoft is reportedly laying off 1,900 employees at Activision Blizzard and Xbox this week, according to The Verge. The cuts will primarily affect roles at Activision Blizzard, but some Xbox and ZeniMax employees will also be impacted. The layoffs represent around 8% of the overall Microsoft Gaming division, which has around 22,000 employees in total.

The news comes just three months after Microsoft closed its $69 billion deal for Activision Blizzard. The company's gaming division CEO, Phil Spencer, confirmed the layoffs in an internal memo. He stated that Microsoft is focused on aligning its strategy and execution plan with a sustainable cost structure that supports its growing business.

In addition to the layoffs, it was announced that Blizzard President Mike Ybarra is leaving the company, and a survival game by Blizzard has been canceled. Microsoft has not yet commented on the layoffs.

The tech industry has seen a wave of layoffs recently, as companies aim to lower costs and increase profitability. In January alone, over 21,000 workers have been let go across 76 tech firms. Despite the layoffs, analysts and experts expect fewer job cuts this year, with companies focusing on AI technology and downsizing in other areas to offset expenses.