Microsoft Cuts 1,900 Jobs Within Activision Blizzard and Xbox Divisions

The tech company, Microsoft Corporation, recently declared significant layoffs within its gaming division, affecting the Activision Blizzard and Xbox units. Approximately 1,900 employees face job losses, which account for nearly 8% of the total workforce in the gaming division. Most of the layoffs will be within Activision Blizzard, but some Xbox and ZeniMax personnel will also be impacted.

This move follows the integration of Activision, Blizzard, and King into Microsoft Corporation over three months ago. Since the merger, the combined leadership of Microsoft Gaming and Activision Blizzard has been developing a streamlined, sustainable strategy that will support the growth of the expansive business.

Labeled as a painful but necessary step, Microsoft’s layoffs aim to reduce the number of roles within its gaming workforce. The move will impact many employees who have made substantial contributions to the success of Activision Blizzard as well as Xbox and ZeniMax teams. Microsoft is committed to offering its full support throughout this transition phase, including severance benefits according to local employment laws.

Though it’s a challenging time for the team, Microsoft Corporation remains hopeful about the future. The company is dedicated to investing in growth areas aligning with its goal of bringing more players globally into the gaming fold.

Moreover, Blizzard President Mike Ybarra and Chief Design Officer Allen Adham have chosen to step down from their roles at Activision Blizzard. The announcement concerning Blizzard’s new president is slated for next week. As part of the ongoing changes, Microsoft is also canceling the development of Blizzard’s survival game, with the team being shifted to work on other promising projects.

These layoffs coincide with other tech companies, like Riot Games, Google, Discord, Twitch, Unity, and eBay, also trimming their workforce. This decision comes after the completion of Microsoft’s $68.7 billion acquisition of Activision Blizzard last October, following almost two years of regulatory hurdles.

Microsoft Corporation is due to announce its fiscal Q2 2024 earnings in the coming week. This report will, for the first time, include the impact of the Activision Blizzard acquisition. This move alongside the layoffs marks Microsoft’s continued efforts to streamline and refocus its gaming division.

Despite the hard times, Microsoft remains dedicated to creating captivating games and fostering stories that captivate players, confirming its commitment to its strategic approach within the gaming industry.