A new report is making the rounds that Microsoft have laid off “hundreds” of staff as reported.

While no specific number was given in the report, it is known to be less than 1000 (via Business Insider). This includes many different branches of the tech giant, including their Xbox gaming division.

A Microsoft spokesperson corroborated the report to Eurogamer: “Like all companies, we evaluate our business priorities on a regular basis, and make structural adjustments accordingly. We will continue to invest in our business and hire in key growth areas in the year ahead.”

One such team affected heavily by these layoffs is Studio Alpha, who was developing military and commercial wargame simulations through the use of Microsoft’s Azure technology.

The military-focused studio have been shut down entirely, which is different than most teams losing out on total members, but are still continuing their work.

Current economic conditions have impacted not only Microsoft, but also many other tech companies. This isn’t exclusive to these companies as high levels of inflation have hit just about every facet in the economy.

While these layoffs are a sign of issues for the tech giant, the company is still showing signs of growth. As has been widely reported on this year, they are still working on their major acquisition of Activision Blizzard. And they have no plans of stopping here, with rumors stating they are looking towards acquiring a “major Japanese publisher”.