Microsoft is undergoing significant restructuring within its gaming division, resulting in the layoff of 1,900 employees at Activision Blizzard and Xbox this week, The Verge is reporting.
These job cuts represent approximately 8% of the overall Microsoft Gaming division, which encompasses around 22,000 employees. The majority of the cuts are concentrated at Activision Blizzard, but some Xbox and ZeniMax employees will also be affected.
An internal memo from Microsoft Gaming CEO Phil Spencer reveals the company’s commitment to realigning strategies and executing a sustainable cost structure in the wake of the recent mergers.
Phil Spencer’s memo acknowledges the painful decision to reduce the gaming workforce, emphasizing the importance of supporting affected employees during the transition.
The layoffs coincide with the departure of Blizzard president Mike Ybarra, who spent over 20 years at Microsoft and opted to leave after overseeing the acquisition. In the coming week, Microsoft plans to appoint a new Blizzard president following his departure.
“Looking ahead, we’ll continue to invest in areas that will grow our business and support our strategy of bringing more games to more players around the world. 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 bring players together.
Phil”
Simultaneously, Blizzard’s chief design officer, Allen Adham, is also leaving the company, leaving an indelible mark on Blizzard’s games. Additionally, Microsoft reveals the cancellation of Blizzard’s previously announced survival game as part of these organizational changes.
Microsoft’s $68.7 billion acquisition of Activision Blizzard in October led to leadership changes, with Bobby Kotick stepping down, leaving a suite of executives reporting to Matt Booty.
The layoffs coincide with Riot Games, Google, Discord, Twitch, Unity, eBay, and others announcing workforce reductions this month.
