Microsoft is making headlines with its decision to lay off roughly 1 900 employees across its Xbox, Activision Blizzard, and ZeniMax teams.
Microsoft mass layoffs: Here’s everything we know
This decision follows the tech giant’s major acquisitions, including the $69 billion purchase of Call of Duty and Overwatch maker Activision Blizzard in October 2023, and the $7.5 billion acquisition of ZeniMax Media in 2020.
Phil Spencer, Microsoft Gaming CEO, explained the layoffs as a necessary move to align strategy with a sustainable cost structure.
In a memo to staff, Spencer emphasised the importance of aligning on a strategy and execution plan that supports the growing business, highlighting the need to set priorities and identify areas of overlap.
The layoffs include notable figures like Blizzard President Mike Ybarra and Allen Adham, chief design officer and Blizzard founder, per Game Informer.
“To the incredible teams at Blizzard – thank you. Words can’t express how I feel about all of you. You are amazing. Continue to do incredible things and always keep Blizzard blue and the player at the forefront of every decision. To all of those impacted today – I am always available to you and understand how challenging today’s news is. My heart is with each one of you,” Ybarra wrote in an email to staffers.
Additionally, Bloomberg reported the cancellation of Odyssey, a long-developed survival game by the studio.
The gaming industry has been witnessing a wave of layoffs in 2024, with more than 5 500 jobs cut in just the first 25 days of the year.
Other major companies, such as People Can Fly, Riot Games, and Unity, have also announced significant staff reductions.
This trend is reflective of broader cost-cutting measures and strategic realignments across the tech industry.