Microsoft Faces 1900 Layoffs From Its Video Game Division
In a significant move impacting gaming, Microsoft is set to lay off 1,900 jobs from its video game division. Xbox head Phil Spencer expressed the difficulty of this decision and assured support for affected employees through a memo sent to IGN.
Spencer’s memo emphasizes the commitment to aligning strategies and execution plans for a sustainable cost structure in collaboration with Activision Blizzard. This strategic realignment aims to foster growth opportunities while acknowledging areas of overlap.
The decision to reduce the gaming workforce by approximately 1,900 roles, about 9% of the total team, reflects the evolving landscape following Microsoft’s $69 billion acquisition of Activision Blizzard in 2023. Layoffs, often a consequence of such acquisitions, are part of streamlining operations and minimizing redundancies.
The memo outlines Microsoft’s dedication to providing severance benefits and support to the affected individuals. While specifics about the allocation of layoffs remain unclear, the company’s commitment to prioritizing growth opportunities signals a forward-looking approach.
Mike Ybarra, Blizzard’s president, is among those departing the company. Additionally, Blizzard’s announced survival game has been cancelled due to these workforce reductions.
The gaming industry has witnessed a wave of job cuts despite a prolific year of blockbuster releases in 2023. Microsoft’s move is reflective of the broader trend, as companies navigate organizational changes to adapt to evolving market dynamics.