Microsoft is to lay off 1,900 gaming employees this week, mostly at the recently acquired business Activision Blizzard.
As first reported in the Verge, the tech giant - which crossed the $3 trillion barrier in market cap earlier this week - is planning to cut around 8% of its 22,000-strong gaming workforce. Most of the reductions will be at Activision Blizzard, which Microsoft acquired late last year in a massive $68.7 billion deal following a contentious competition probe. However, some of the cuts will be at Xbox and Zenimax. A Microsoft spokesperson later confirmed details of the cuts to the Standard.
Microsoft Gaming CEO Phil Spencer sent staff a memo that said: “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.
“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 geographic breakdown of the cuts currently remains unclear, though Activision Blizzard - known for games including Call of Duty and World of Warcraft - has a London office on Wardour Street.
Tech firms announced big job cuts in 2022 and 2023, as higher interest rates led to a pivot towards more rapid profitability. Today’s cuts are probably the most notable tech layoffs so far in 2024.
