New York, Tuesday, February 6, 2024 – On January 25, Microsoft announced it was laying off approximately 1,900 employees in its gaming division, representing roughly 8% of the workforce. 1
AP said its report is based on an internal memo sent by Microsoft Gaming CEO Phil Spencer.
This decision comes a little over three months after Microsoft finalized its acquisition of Activision Blizzard.
Microsoft Gaming CEO Phil Spencer has reportedly stated that the layoffs are a component of a broader “execution plan,” aiming to minimize “areas of overlap.”
The company attributed the layoffs to a combination of factors, including a broader economic slowdown impacting the tech industry, a restructuring designed to streamline operations, and potential redundancies following the recent acquisition of Activision Blizzard.
The layoffs are expected to impact various functions across the gaming division, though specific details remain unclear.
Industry analysts anticipate ripple effects as displaced workers seek new opportunities elsewhere in the gaming industry.
Despite the job cuts, Microsoft maintains its commitment to gaming as a core business segment.
The company plans to continue investing in cloud gaming, mobile gaming, and its Xbox Game Pass subscription service, which boasts over 30 million users.
Blizzard President Mike Ybarra and many top executives have already resigned from their position.
Ybarra announced that he would be leaving the company in a post on X, the platform formerly known as Twitter, appearing to acknowledge the layoffs. 2
In January last year, Microsoft announced a major reduction in its workforce, which estimated 10,000 job cuts. 3
- AP news: https://apnews.com/article/microsoft-layoffs-activision-blizzard-job-cuts-580e3f001b8c92212547a4a58056c69c[↩]
- https://twitter.com/Qwik/status/1750527310493868293[↩]
- CNBC: https://www.cnbc.com/2023/01/18/microsoft-is-laying-off-10000-employees[↩]
