Microsoft has announced that it will be laying off 1,900 employees as part of a series of job cuts in the technology and gaming industry. This news comes just three months after Microsoft acquired Activision, Blizzard, and King. The layoffs will affect around 8% of the Microsoft Gaming division, as reported by The Verge. The layoffs also include roles at Activision Blizzard and Xbox, with some employees from Xbox and ZeniMax also being affected.
Microsoft Gaming CEO Phil Spencer confirmed the layoffs in an internal memo, stating that the company has identified areas of overlap and those whose roles will be impacted will be notified. Additionally, Blizzard president Mike Ybarra and Allen Adham, Blizzard’s chief design officer, will be leaving the company. Microsoft’s game content and studios president Matt Booty also mentioned that Ybarra is leaving after more than 20 years at the company.
This move comes at a time when Microsoft has just crossed the $3 trillion mark, briefly overtaking Apple as the most valued company. The layoffs are expected to have a significant impact on the affected employees, especially given that Microsoft had laid off 10,000 employees last year.
In related news, Microsoft’s fiscal Q2 2024 earnings, which will include results from the impact of the Activision Blizzard acquisition, are due to be reported next week. The company also plans to appoint a new Blizzard president in the coming week.
The layoffs at Microsoft have sparked a debate among industry experts and analysts. While some argue that these layoffs are necessary for the company to realign its resources following the acquisition of Activision Blizzard, others are concerned about the impact it will have on the employees and the gaming industry as a whole. It remains to be seen how this move will shape the future of Microsoft and the gaming industry.