SUMMARY
- Activision Blizzard became a victim of lay offs after Microsoft decided to slash its gaming division.
- A total of 1900 employees were laid off.
The year has started on a low note for the gaming and tech sector which is announcing massive layoffs. Big tech giants have announced job cuts including Google, Apple, and more. According to Layoffs.fyi, in January alone, more than 21,000 employees have been laid off across 76 tech companies, and the month ain’t over yet. Joining them is the most recent layoffs by Microsoft.
The company decided to cut down its staff from its gaming division. Notably, the news comes merely three months after Microsoft closed the biggest deal in the history of gaming. In October 2023, Microsoft acquired famous game developer Activision Blizzard for a whopping $68.7 million following a 20-month-long battle with various regulators and opposers.
Microsoft lays off 8% of the gaming division
Just a couple of days after the company touched the $3 trillion barrier market cap, the employees of the Microsoft Gaming division received an internal memo from Microsoft CEO Phil Spencer. The memo broke out the news of the layoffs to the employees.
While the company primarily let go of Activision Blizzard employees, some Xbox and ZeniMax employees were also affected. Phil’s memo read, “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.”
I want to thank everyone who is impacted today for their meaningful contributions to their teams, to Blizzard, and to players’ lives. It’s an incredibly hard day and my energy and support will be focused on all those amazing individuals impacted – this is in no way a reflection…
— Mike Ybarra 🎄 (@Qwik) January 25, 2024
It added, “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.”
This accounts for approximately 8% of the entire workforce of Microsoft Gaming. Phil’s memo also highlighted that the people who are directly impacted by the cuts have all played an essential part in the success of Activision Blizzard, ZeniMax, and the Xbox teams. He urged the employees to be proud of everything they have accomplished at the company.
Along with the 1,900 employees who will be exiting the company, Blizzard president Mike Ybarra and Blizzard’s chief design officer Allen Adham also announced their departure from the company. Similarly, the company also announced the cancellation of one of Blizzard’s upcoming unannounced survival game.
Activision Blizzard’s remaining employees
Phil Spencer in his internal email mentioned that the company was laying off around 1,900 employees out of its total strength which stands at 22,000. Thus after the job cuts, Microsoft Gaming’s new total workforce would clock at around a little more than 20,000 (20,100 to be precise).
Microsoft lays off 1,900 Activision Blizzard and Xbox employees 📝
Mike Ybarra, President of Blizzard Entertainment, has departed from the company, and the previously unannounced Survival IP has been canceled.
Best wishes to any and all employees affected 💔 pic.twitter.com/RBEpaj9qb1
— Overwatch Cavalry (@OWCavalry) January 25, 2024
That being said, it must be noted that these numbers are for Microsoft Gaming overall, which includes Activision Blizzard, Xbox, and ZeniMax. Some reports suggest that before the layoffs, Activision Blizzard had around 17,000 employees on their payroll in 2023.
It must be noted that the company has not disclosed the figures separately for each of its subsidiaries. Besides, the layoffs are confirmed to affect all three divisions in varied proportions. Thus, it is difficult to ascertain the exact numbers affected at Blizzard alone.