Microsoft confirmed it is cutting about 1,900 positions across Activision Blizzard and Xbox this week, equal to roughly 8% of the company’s overall gaming workforce of about 22,000 employees.
In an internal memo, Phil Spencer, CEO of Microsoft Gaming, said the decision was difficult and described support measures for affected staff. Spencer wrote that the company will provide support during the transition, including severance benefits in accordance with local labor laws.
“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,” Spencer added in the memo.
Blizzard leadership changes and canceled project
Alongside the layoffs, Blizzard president Mike Ybarra has chosen to leave the company. Microsoft is expected to name a new president next week. Allen Adham, Blizzard’s design director, will also depart.
As part of the restructuring, a previously announced survival game from the company has been canceled.
The report with these personnel and project details was attributed to The Verge.
Scope and context of the cuts
Most of the reductions are concentrated at Blizzard, though some Xbox employees will also be affected. The cuts come amid a month in which several other tech and gaming companies—such as Riot Games, Google, Discord, Twitch, Unity and eBay—announced layoffs.
Microsoft last carried out a major round of job cuts a year ago, then eliminating 10,000 positions.
Acquisition and upcoming financials
Microsoft completed its acquisition of Activision Blizzard for $68.7 billion in October, following about 20 months of regulatory review. The company is scheduled to report fiscal second-quarter results for 2024 next week; those results will include, for the first time, financial impacts from the Activision Blizzard acquisition.
