In line with IGN, Microsoft has fired 1,900 workers from its online game divisions together with Xbox and Activision Blizzard. The layoffs have an effect on virtually 9% of the 22,000 workers on the firm. In a memo to workers, Microsoft Gaming CEO claims the layoffs come after management at Microsoft Gaming and Activision Blizzard recognized areas of overlap following the latest acquisition of Activision, Blizzard, and King.

Right here is the complete memo Phil Spencer despatched to workers:

It’s been just a little over three months because the Activision, Blizzard, and King groups joined Microsoft. As we transfer ahead in 2024, the management of Microsoft Gaming and Activision Blizzard is dedicated to aligning on a method and an execution plan with a sustainable value construction that can help the entire of our rising enterprise. Collectively, we’ve set priorities, recognized areas of overlap, and ensured that we’re all aligned on the perfect alternatives for development.

As a part of this course of, we have now made the painful resolution to cut back the scale of our gaming workforce by roughly 1,900 roles out of the 22,000 folks on our staff. The Gaming Management Group and I are dedicated to navigating this course of as thoughtfully as attainable. The people who find themselves straight impacted by these reductions have all performed an necessary half within the success of Activision Blizzard, ZeniMax and the Xbox groups, and they need to be happy with every part they’ve achieved right here. We’re grateful for all the creativity, ardour and dedication they’ve delivered to our video games, our gamers and our colleagues. We are going to present our full help to those that are impacted throughout the transition, together with severance advantages knowledgeable by native employment legal guidelines. These whose roles might be impacted might be notified, and we ask that you just please deal with your departing colleagues with the respect and compassion that’s in step with our values.

Trying forward, we’ll proceed to spend money on areas that can develop our enterprise and help our technique of bringing extra video games to extra gamers around the globe. Though it is a troublesome second for our staff, I’m as assured as ever in your capacity to create and nurture the video games, tales and worlds that carry gamers collectively.

– Phil Spencer, Microsoft Gaming CEO

Blizzard President out as properly

Shortly after the information broke, Activision Blizzard President Mike Ybarra took to Twitter to announce that at this time can be his final day at Blizzard. In line with Ybarra, “with the acquisition of Activision Blizzard behind us, it’s time for me to (as soon as once more) develop into Blizzard’s largest fan from the surface.”

Ybarra was at Microsoft for over 20 years earlier than becoming a member of Blizzard, changing into its President in 2021. As an enormous Blizzard fan, this appears like a giant loss, as World of Warcraft has actually began to enhance below Ybarra.

I need to thank everybody who’s impacted at this time for his or her significant contributions to their groups, to Blizzard, and to gamers’ lives. It’s an extremely laborious day and my power and help might be centered on all these wonderful people impacted – that is on no account a mirrored image…

— Mike Ybarra ? (@Qwik) January 25, 2024

This all simply feels so unusual to me. It’s solely been three months since Microsoft purchase Activision for a record-breaking $69 billion, one of many largest tech acquisitions ever. And but, virtually 2,000 workers are dropping their jobs.

Whereas actually one of many largest reductions within the workforce lately, sadly, the information feels par for the course within the video games business in the intervening time. In simply the previous couple of days, a number of different corporations have undergone layoffs together with League of Legends creator Riot Video games and Outriders developer Individuals Can Fly.

In 2023 over 10,000 jobs have been misplaced within the business. We’re not even out of January and 2024 has already seen virtually half of that.