Microsoft Layoffs Affect 1,900 Employees Across Activision Blizzard and Xbox

Microsoft has laid off 1,900 of its employees across Activision Blizzard and Xbox this week. The tech giant's primary role for layoffs has been in the Activision Blizzard section right after closing its $69 billion merger; however, employees from Xbox and ZeniMax have also lost their posts due to significant impacts on the company's recent revenue stream.

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According to The Verge's internal memo, which was taken from Microsoft Gaming CEO Phil Spencer, the company confirmed the layoffs by explaining priorities for the near future. The recent layoff has cut out around 8% of the company's current workforce out of the 22,000 employees spread across all the divisions.

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Also read: UK Finally Gives Microsoft The Go-Ahead For The Activision Blizzard King Merger

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Microsoft Layoffs 8% of its Workforce Soon After Closing its Major Merger

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Microsoft, Activision, Blizzard, and King teams have joined forces recently with their leap into 2024. In the memo, the leadership of Microsoft Gaming and Activision Blizzard has stated that they are committed to aligning on a strategy and an execution plan with a sustainable structure. This will aid the growth of the business, says Microsoft.

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The process has given birth to the painful decision of eliminating 1,900 roles out of the 22,000 employees in the team. Phil Spencer has stated that he has worked with The Gaming Leadership Team to 'navigate' this process with a thoughtful mind.

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In the memo, Spencer mentioned:

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"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."

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He concluded the memo by adding that Microsoft is looking forward to investing in more areas for growth which will support the business and its strategies to bring more games to players across the globe.

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​Mike Ybarra, the Blizzard president, has also decided to leave the company following the recent layoffs. The ex-president has spent more than 20 years in Microsoft; however, Ybarra has stepped down from his position after seeing through the merger. The news was announced by Matt Booty, game content and studios president at Microsoft in another internal memo this week.

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What More Has Microsoft Announced Alongside the Recent Layoffs?

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Microsft is also cancelling its projects following its layoffs as claimed by the company's recent memos. Blizzard's previously announced unnamed survival game is one of those projects that has been shut down as part of these recent changes. ccording to Matt Booty, the company will shift the people working on the title to newer projects.

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