Scattered in Activision-Blizzard ranks, Microsoft lays off 1,900 people, CEO Mike Ybarra quits
Only four months after merging with the famous gaming company, Microsoft has announced that it will lay off 1,900 employees from Activision-Blizzard i Xbox timova.
Microsoft has revealed plans to cut around 1,900 jobs just four months after completing its merger with gaming giant Activision-Blizzard. The layoffs, which affect about 8% of Microsoft's total gaming division, will reportedly affect employees in the Activision-Blizzard division the most, but will also affect some employees at Zenimax (Bethesda) and Xbox.
Portal report The Verge details an internal memo sent by Xbox boss Phil Spencer addressing the fraught decision. Spencer acknowledged the challenges of merging different gaming entities and highlighted the need for a sustainable cost structure to support a growing business. He stated: “As part of this process, we have made the painful decision to reduce the size of our gaming workforce by approximately 1,900 jobs out of the 22,000 people on our team..”
Sergei Elagin/Shutterstock.comSpencer expressed his gratitude for the contributions of those affected and assured that they will be supported during the transition, including severance pay in accordance with local employment laws. He also highlighted the commitment to invest in areas that will support the growth of the business and bring more games to players around the world.
We also learned that Blizzard President Mike Ybarra will be leaving the company. Ybarra, who joined Blizzard in 2019 after nearly two decades at Microsoft, reached out via social media.
It also mentions the cancellation of Blizzard's upcoming survival game “Odyssey” and that the employees on that have been moved to other, unknown projects.
This announcement comes after Microsoft announced about 10,000 job cuts a year ago. The gaming industry has seen several layoffs recently, including those at Riot Games, People Can Fly, and the potential closure of Piranha Bytes. Hopefully those affected by Microsoft's layoffs will soon find new jobs in the industry.