This week, Microsoft is letting go of 1,900 workers from Activision Blizzard and Xbox. Activision Blizzard employees are the main target of Microsoft’s layoffs, but certain employees of Xbox and ZeniMax will also be affected. Microsoft recently made a $69 billion acquisition of Activision Blizzard.
The reductions amount to almost 8% of the whole workforce of Microsoft Gaming, which employs about 22,000 people.
Additionally, Blizzard president Mike Ybarra has chosen to depart, and the company has scrapped its survival game. Mike has previously been at Microsoft for 20 years.
Microsoft Gaming CEO Phil Spencer said, “It’s been over three months since the Activision, Blizzard, and King teams joined Microsoft. As we move forward in 2024, the leadership of Microsoft Gaming and Activision Blizzard is committed to aligning a strategy and an execution plan with a sustainable cost structure that will support the whole of our growing business. Together, we’ve set priorities, identified areas of overlap, and ensured that we’re all aligned on the best growth opportunities.
“As part of this process, we have made the painful decision to reduce the size of our gaming workforce by approximately 1900 roles out of the 22,000 people on our team. The Gaming Leadership Team and I are committed to navigating this process as thoughtfully as possible. The people directly impacted by these reductions have all played an important part in the success of Activision Blizzard, ZeniMax, and the Xbox teams, and they should be proud of everything they’ve accomplished here. We are grateful for all the creativity, passion, and dedication they have brought to our games, players, and colleagues. We will support those impacted during the transition, including severance benefits informed by local employment laws. Those whose roles will be impacted will be notified, and we ask that you please treat your departing colleagues with respect and compassion consistent with our values.”
“Looking ahead, we’ll continue to invest in areas that will grow our business and support our strategy of bringing more games to players worldwide. Although this is a difficult moment for our team, I’m as confident as ever in your ability to create and nurture the games, stories, and worlds that unite players.”
Microsoft has a market value above $3 trillion, making it the second firm to reach that milestone.
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