Microsoft plans to lay off about 1,900 employees in its video game division, or about 9% of the unit's head count, according to a news report. Microsoft stock edged higher Thursday.
The workforce reduction comes three months after Microsoft closed its $69 billion acquisition of game publisher Activision Blizzard.
In a memo obtained by CNBC, Microsoft Gaming CEO Phil Spencer said the layoffs will reduce "areas of overlap." The gaming division currently has 22,000 employees.
On the stock market today, Microsoft stock rose 0.6% to close at 404.87.
On Wednesday, Microsoft reached a market capitalization of $3 trillion. Apple last year became the first company to reach that milestone valuation. Microsoft ended the regular session Thursday with a market value of nearly $3.01 trillion.
Microsoft stock is on three IBD lists: IBD 50, Tech Leaders and Long-Term Leaders.
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