Microsoft Is Laying Off 1,900 People From Activision Blizzard, Xbox And Other Units

Microsoft is reducing the size of its gaming teams by laying off 1900 employees, the media has reported. In an email shared with Windows Central by an anonymous source, Microsoft Gaming CEO Phil Spencer confirmed that these job cuts, amounting to 1900 out of the existing 22,000, aim to establish a “sustainable cost structure.”

This week, job cuts at Microsoft will affect 1,900 employees at both Activision Blizzard and Xbox divisions. While the primary focus is on roles at Activision Blizzard, there will also be an impact on some employees from Xbox and ZeniMax due to the cuts.

“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. Together, we’ve set priorities, identified areas of overlap, and ensured that we’re all aligned on the best opportunities for growth,” Spencer was quoted as saying by Windows Central.

Activision Blizzard, known for major gaming franchises like Call of Duty and Diablo, also houses the mobile gaming subsidiary King, the developer of immensely popular Candy Crush Saga.

Ex-Blizzard president Mike Ybarra announced on X, formerly Twitter, on Thursday that he will be departing from both Microsoft and Blizzard.

“As part of this process, we have made the painful decision to reduce the size of our gaming workforce by approximately 1900 roles out of the 22,000 people on our team. The Gaming Leadership Team and I are committed to navigating this process as thoughtfully as possible. 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. We are grateful for all of the creativity, passion and dedication they have brought to our games, our players and our colleagues. We will provide our full support to those who are impacted during the transition, including severance benefits informed by local employment laws. Those whose roles will be impacted will be notified, and we ask that you please treat your departing colleagues with the respect and compassion that is consistent with our values,” Spencer added.