Following Microsoft’s $69 billion merger deal with Activision-Blizzard, approximately 2,000 workers in Microsoft’s gaming division are slated for layoffs. Xbox boss Phil Spencer communicated this decision in a memo, revealing the intention to reduce the company’s workforce by 1,900 out of 22,000 employees. The letter, verified by Microsoft, characterizes the move as a “painful decision” three months after the completion of the Activision-Blizzard acquisition, recognized for franchises like Call of Duty and Warcraft.
According to the memo, staff within the Xbox division and at publisher Zenimax, overseeing studios like Bethesda and Arkane, will be impacted. Microsoft has been contacted for specifics regarding the affected employees in each business unit.
Another letter from Microsoft Studios head Matt Booty, addressed to Blizzard staff, confirmed that meetings with affected employees would be conducted throughout the day, with international workers being informed later. The company assured support, including severance benefits in accordance with local employment laws. The message also acknowledged the cessation of development on a survival game project referred to as Odyssey.
Microsoft’s acquisition of Activision-Blizzard and King, the creator of Candy Crush, was finalized in September of the previous year. Following the deal, Activision CEO Bobby Kotick departed, and in the wake of the latest layoffs, Blizzard boss Mike Ybarra announced his departure.
The video game industry has witnessed multiple layoffs this year, with companies like Riot Games, Unity, and Twitch announcing job cuts. The broader tech sector has also experienced significant workforce reductions, with Microsoft itself announcing 10,000 job losses last January. Further comments from Microsoft regarding the gaming division layoffs have been sought by the BBC.
