Reports have come out that Microsoft is set to lay off 1,900 staff across its video game workforce, including from Activision Blizzard and Xbox.
In a message obtained by IGN from Xbox head Phil Spencer to staff, Microsoft will be providing “full support to those who are impacted during the transition, including severance benefits informed by local employment laws.”
The layoffs come after Microsoft acquired Activision Blizzard for nearly $69 billion, the largest acquisition in the tech industry ever. The gaming industry has been seeing major layoffs coming into 2024 as well, with over 5,000 workers losing their jobs just 25 days into the new year.
The full memo from Phil Spencer is below:
“It’s been a little over three months since the Activision, Blizzard, and King teams joined Microsoft. As we move forward into 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.
“As part of this process, we have made the painful decision to reduce the size of our gaming workforce by approximately 1,900 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.
“Looking ahead, we’ll continue to invest in areas that will grow our business and support our strategy of bringing more games to more players around the world. Although this is a difficult moment for our team, I’m as confident as ever in your ability to create and nurture the games, stories and worlds that bring players together.
“Phil.”
Aside from Microsoft, Unity, Reikon Games, Riot Games and other studios have been reporting layoffs of large chunks of their respective staff. 2023 had seen layoffs up by nearly 200% across the board and it seems like the trend is continuing into the new year, as barely a month into 2024, total layoffs in the gaming industry have reached nearly half of 2023’s total figure.
Zainah Yousef
Zainah Yousef is the author of The Fallen Age Saga and specializes in gaming, social media advice, and reviews. She's been writing all her life and she probably won't stop anytime soon.
