According to The Verge , Microsoft has announced plans to lay off 1,900 employees across its Activision Blizzard and Xbox divisions. The positions being cut are concentrated primarily at Activision Blizzard, accounting for about 8% of Microsoft's gaming division's 22,000 employees.
The company said the decision was made to restructure its spending and exploit growth opportunities after acquiring Activision Blizzard for $68.7 billion in October 2023.
Along with the wave of layoffs, Blizzard's general manager Mike Ybarra has also decided to leave the company. In addition, design director Allen Adham is also preparing to leave. Even the recently revealed survival game Blizzard has temporarily paused development.
Microsoft just announced the layoff of 1,900 Activision Blizzard and Xbox employees
This was a difficult but necessary decision according to Microsoft so that Blizzard and Xbox can focus on core strategies and products, exploiting the strengths of both sides. Employees of the canceled survival game project will be transferred to promising new projects in the early stages of development.
The massive layoffs come just months after Microsoft appointed Sarah Bond as president of Xbox, responsible for all Xbox hardware and platforms, and Matt Booty as president of content and game development studios, including Bethesda, ZeniMax, and Activision Blizzard. The company's last round of cuts came a year ago, leaving more than 10,000 employees out of work.
Microsoft said it remains focused on bringing high-quality games to players across more platforms. The company said it will provide maximum support to affected employees and is committed to building an open and respectful work culture where everyone can perform to their full potential.
Microsoft's layoffs and internal changes at Blizzard will certainly have a big impact on the gaming market in the coming time. Notably, Blizzard's new games, Xbox's development strategy, and the future of Microsoft's gaming division after the huge acquisition.
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