Microsoft is laying off 1,900 workers — or around 8% of Microsoft Gaming’s 22,000 employees — from its gaming division. The majority of layoffs are at Activision Blizzard, according to the Verge, though cuts will impact Xbox and ZeniMax employees, too.
Microsoft Gaming CEO Phil Spencer sent out a memo to staff Thursday morning to announce the cuts:
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. Together, we’ve set priorities, identified areas of overlap, and ensured that we’re all aligned on the best opportunities for growth.
As part of this process, 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. The Gaming Leadership Team and I are committed to navigating this process as thoughtfully as possible. The people who are directly impacted by these reductions have all played an important part in the success of Activision Blizzard, ZeniMax and the Xbox teams, and they should be proud of everything they’ve accomplished here. We are grateful for all of the creativity, passion and dedication they have brought to our games, our players and our colleagues. We will provide our full support to those who are impacted during the transition, including severance benefits informed by local employment laws. Those whose roles will be impacted will be notified, and we ask that you please treat your departing colleagues with the respect and compassion that is consistent with our values.
Looking ahead, we’ll continue to invest in areas that will grow our business and support our strategy of bringing more games to more players around the world. Although this is a difficult moment for our team, I’m as confident as ever in your ability to create and nurture the games, stories and worlds that bring players together.
Phil
Microsoft has not responded to Polygon’s request for comment, nor has it issued a public statement.
Blizzard president Mike Ybarra, who previously worked for Microsoft for more than 20 years, will leave the company, he posted on X, formerly Twitter. “As many of you know, Mike previously spent more than 20 years at Microsoft. Now that he has seen the acquisition through as Blizzard’s president, he has decided to leave the company,” Microsoft studios president Matt Booty said in a statement published by the Verge. Alongside the job losses, Microsoft is also canceling Activision Blizzard’s unannounced survival game to instead focus efforts on “one of several promising new projects Blizzard has in the early stages of development.”
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