Do you want to get the latest gaming industry news straight to your inbox? Sign up for our daily and weekly newsletters here.
Microsoft is laying off 1,900 employees across the Xbox, Bethesda, and Activision Blizzard teams, which is the latest in a series of layoffs across the gaming industry. This move, which is the first major cut since the $68.7 billion acquisition of Activision Blizzard in October, follows a reorganization to deal with the new company structure. Blizzard’s president, Mike Ybarra, and its chief design officer Allen Adham are departing the studio, and Blizzard’s survival game is no longer in development. The industry has seen over 11,000 job cuts in the game sector last year and 3,500 so far this year.
2024 has seen half of the 11,000 game layoffs of 2023 in just the first 25 days of the year.
I want to thank everyone who is impacted today for their meaningful contributions to their teams, to Blizzard, and to players’ lives. It’s an incredibly hard day and my energy and support will be focused on all those amazing individuals impacted – this is in no way a reflection…
— Mike Ybarra ? (@Qwik) January 25, 2024
Ybarra, who spent over 20 years at Microsoft, announced his departure from Blizzard through a tweet. His departure comes after the acquisition of Activision Blizzard. Phil Spencer, head of gaming at Microsoft, mentioned in a memo to staff that the company had to make a “painful decision” to cut 1,900 jobs.
Spencer mentioned that the leadership of Microsoft Gaming and Activision Blizzard is committed to aligning on a strategy and an execution plan with a sustainable cost structure to support the growing business despite facing these reductions. The impacted employees will receive support during the transition.
GamesBeat reports that Microsoft is expected to announce a new Blizzard president by next week. It is also important to note that Microsoft will be cutting about 8% of its gaming division, which currently has 22,000 employees.
GamesBeat’s creed when covering the game industry. Discover our Briefings.
