Microsoft’s gaming division is set to lay off nearly 2,000 employees following its $69 billion merger deal. Xbox boss Phil Spencer sent a memo to workers stating that the company plans to cut 1,900 of its 22,000 staff. The layoffs come three months after Microsoft acquired Activision-Blizzard, known for popular game franchises such as Call of Duty and Warcraft. The memo, confirmed as authentic by Microsoft, reveals that staff within the Xbox division and at publisher Zenimax will also be affected. Microsoft has been asked for further details on the number of employees impacted in each business. In a separate letter to Blizzard staff, Microsoft Studios head Matt Booty confirmed that meetings with affected employees would take place throughout the day. The layoffs in the gaming industry have been attributed to the cost-of-living crisis and scaling back after the boost from the Covid pandemic.