Microsoft starts a new round of job cuts and the next phase of its Xbox 'reset.' Read the memo.

Sven Hoppe/picture alliance via Getty Images Microsoft started a new round of job cuts on Tuesday. The layoffs affect around 500 employees. The cuts are mainly in the Xbox gaming division, but affect other units such as Cloud + AI. Microsoft began a new round of layoffs on Tuesday, affecting around 500 employees, primarily in its Xbox gaming division, and a small number of roles in other units like cloud + AI. The latest cuts follow layoffs in July, when Microsoft said it would trim 2.1% of its global workforce, or about around 4,800 employees at the time. The cuts are the latest step in Microsoft's effort to slim down its gaming business after years of expansion and big acquisitions.