The past couple of years haven’t been kind to the tech industry, as evidenced by the massive number of layoffs that have affected several big names in the business. Recently, it looks like Microsoft has likewise been affected by the layoffs as well – it’s reported that the company is planning to cut as much as 1900 jobs from its Xbox division, as well as its recently-acquired Activision Blizzard studios.
According to an internal memo from Microsoft Gaming CEO Phil Spencer, the cuts come as a result of a strategy that will “reduce areas of overlap.” The following is taken from his memo:
“It’s been a little 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 on a strategy and an execution plan with a sustainable cost structure that will support the whole of our growing business… As part of this process, we have made the painful decision to reduce the size of our gaming workforce by approximately 1,900 roles out of the 22,000 people on our team… We will provide our full support to those who are impacted during the transition, including severance benefits informed by local employment laws.”
The layoffs have also affected key positions, which include Blizzard Entertainment President Mike Ybarra and Blizzard’s Chief Design Officer and Co-founder Allen Adham who will step down from their roles. This development follows Microsoft’s acquisition of Activision Blizzard a few months back, a deal summing up to around $69 billion.