According to a memo circulated by Xbox head Phil Spencer to employees on Thursday, the impacted roles primarily belong to corporate and support functions. Spencer assured that this adjustment will not lead to the cancellation of any games, devices, or experiences, nor will it result in the closure of any studios.

Microsoft’s acquisition of Activision Blizzard in the previous year significantly bolstered its presence in the gaming industry with popular titles like “Call of Duty,” enabling it to enhance competition against key rival Sony. In January, the company had announced plans to lay off 1,900 workers across Activision Blizzard and Xbox.

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The success of Chat GPT has propelled OpenAI’s popularity and contributed to a remarkable surge in the company’s valuation, based in San Francisco. Recent media coverage suggests that tech giants like Apple and Nvidia are considering investments in OpenAI as part of a fundraising round that could value the ChatGPT developer at over $100 billion. Additionally, reports indicate that Microsoft, a key supporter of OpenAI, is likely to participate in the investment opportunity.

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