In a significant move, Microsoft has decided to lay off at least 1,900 employees from gaming giant Activision Blizzard, a company it recently acquired, along with cuts in its Xbox division. The decision comes as part of a restructuring effort and will impact approximately 8 percent of Microsoft’s gaming division, which boasts a total workforce of 22,000 employees.
Microsoft Gaming CEO Phil Spencer addressed the layoffs in an internal memo on Thursday, stating, “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.” Spencer acknowledged the contributions of the affected employees, emphasizing their integral role in the success of Activision Blizzard, ZeniMax, and the Xbox teams.
As a consequence of the layoffs, Activision Blizzard President Mike Ybarra has chosen to leave the company. Expressing gratitude to the impacted individuals, Ybarra stated, “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 on your amazing work.”
Having spent over two decades at Microsoft, Ybarra mentioned that, with the completion of the Activision Blizzard acquisition, it is time for him to transition into a supporter of Blizzard from an external vantage point.
Microsoft finalized its acquisition of Activision Blizzard in October of the previous year, concluding a $68.7 billion deal that faced regulatory scrutiny in both the UK and the US. The company had also reorganized its Xbox gaming and marketing leadership in the same month, according to reports from The Verge.
