Microsoft said it is cutting 650 jobs in its Xbox unit, the third such layoff this year as the company tries to rein in costs and integrate its $69 billion acquisition of Activision Blizzard, Bloomberg News reported on Thursday.

The job cuts will affect mostly corporate and supporting functions, the report said, citing a memo sent to staff by Xbox chief Phil Spencer.

Microsoft did not immediately respond to a Reuters request for comment.

The technology giant had said in January it would let go of 1,900 employees at Activision Blizzard and Xbox.

In May, Xbox had shut down a number of gaming studios, including Arkane Austin, as the gaming industry grapples with rising game development costs and lukewarm growth.

  - Reuters