It has been reported that Microsoft’s gaming division is to lay off about 1,900 employees. This division, which includes Activision Blizzard, ZeniMax and Xbox, has been successful, but the layoffs mean it will be reduced from 22,000 employees. Phil Spencer, CEO of Microsoft Gaming, has spoken about the difficulty of letting go of valuable employees who have made significant contributions to the company’s success.
Spencer has reportedly asked the impacted employees to take pride in their achievements and has assured them of complete support from the company. Microsoft will provide severance pay for a smooth transition and Spencer has called on the remaining employees to support their colleagues during this difficult time.
The gaming division now plans to focus on areas with potential for growth and develop new products for players worldwide.
Microsoft acquired Activision Blizzard in October 2023 in a $69 billion deal, the biggest acquisition in gaming history. The acquisition was intended to draw more players to Microsoft’s Xbox consoles and Game Pass subscription service. Activision Blizzard offers popular games such as Spyro, Diablo, World of Warcraft and Call of Duty, and also owns King, the makers of Candy Crush.
Mike Ybarra, president of Blizzard Entertainment, which produces and distributes Blizzard’s games, has resigned after almost five years with the company.
