Key Facts.
- According to the report by The Verge, the layoffs will primarily come from within Activision Blizzard, but will also affect other gaming divisions of Microsoft, including Xbox and ZeniM
- As per the statement from Phil Spencer, Microsoft’s Gaming CEO, this reduction accounts for approximately 8% of Microsoft’s total gaming workforce of 22,000.
- Spencer stated in a purported statement that the layoffs were part of efforts to align Microsoft and Activision Blizzard with a strategy that will support the growth of our entire business with a sustainable cost structure.
- In the restructuring of Microsoft’s gaming landscape, Mike Ybarra, President of Blizzard, also announced on Thursday that he is leaving the company.
Key Background.
After conducting reviews of executives in both the US and the UK, Microsoft has finalized the acquisition of popular video game publisher Activision Blizzard, known for titles such as Call of Duty and World of Warcraft. Amidst cuts in the gaming and tech industries, other layoffs have occurred. Last week, Riot Games, the company behind the video game League of Legends, announced more than 500 layoffs. Video game company Unity Software also made cuts to 1,800 jobs earlier this month. By 2024, several tech companies including Facebook, Google, Amazon, Twitch, and Discord have already announced layoffs.
Details
“After three months of completing the acquisition of Activision Blizzard for $69 billion by tech giants, Microsoft, on Thursday, announced layoffs in its video game division. The company stated that it would eliminate 1,900 roles, including those from Activision Blizzard, which it acquired three months ago for $69 billion.
According to a staff memo from Phil Spencer, the Head of Microsoft Gaming, job cuts will occur in the video game giant Activision, known for hit games like Call of Duty and Guitar Hero, along with Xbox. The New York Times reported this development.
This cut resulted in approximately a 9% reduction in Microsoft’s video game team, affecting around 22,000 employees.
Mr. Spencer remarked, “Looking ahead, we will continue to invest in areas that will grow our business and support our strategy of bringing more games to more players around the world.”
Microsoft, competing fiercely with Apple as the world’s largest public company, completed the acquisition of Activision Blizzard in October after facing regulatory hurdles for about a year.
Activision Blizzard’s CEO, Mike Ybarra, also announced on the social media platform Xbox that Thursday would be his last day with the company.
I want to thank everyone who is impacted today for their meaningful contributions to their teams, to Blizzard, and to players’ lives. It’s an incredibly hard day and my energy and support will be focused on all those amazing individuals impacted – this is in no way a reflection…
— Mike Ybarra 🎄 (@Qwik) January 25, 2024
Mr. Ybarra wrote, “After spending over 20 years at Microsoft and now, with the acquisition of Activision Blizzard behind us, it’s (once again) time for me to become Blizzard’s biggest fan.”