Microsoft lays off 1900 employees after the Activision Blizzard merger

Microsoft’s gaming division is preparing to lay off almost 2,000 employees following its $69 billion merger deal.
Xbox boss Phil Spencer sent a memo to workers, stating that the company plans to reduce its staff by 1,900 out of the 22,000 total.

This decision comes three months after Microsoft acquired Activision-Blizzard, the well-known developer responsible for successful game series such as Call of Duty and Warcraft. The memo reveals that job losses will occur within the Xbox division and at publisher Zenimax, which oversees studios like Bethesda and Arkane.

A second letter was sent to Blizzard staff from Matt Booty, head of Microsoft Studios. He informed employees that meetings would be held throughout the day to discuss the situation and that workers located outside of North America would be notified later.

The letter echoed Spencer’s sentiments, stating that the company would provide full support and severance benefits based on local employment laws. It also confirmed the discontinuation of development on a survival game project called Odyssey.

The layoffs at Microsoft’s gaming division are part of a larger trend in the gaming industry, which has already seen significant job cuts this year.
Riot Games, the maker of League of Legends, recently announced a 11% reduction in its workforce, while game engine maker Unity and Amazon-owned streaming platform Twitch have also laid off hundreds of employees. Estimates suggest that there were over 10,000 job losses in the gaming industry last year, and the true number is believed to be even higher.

Experts attribute this trend to a combination of factors, including the cost-of-living crisis and the industry scaling back after experiencing a surge during the Covid-19 pandemic.

The wider tech sector has also faced layoffs, with Microsoft itself announcing 10,000 job losses last year. Other industry giants such as Amazon and Meta have also had to reduce their workforce.

As the gaming industry continues to evolve and adapt, it remains to be seen how these layoffs will impact future developments and the overall landscape of the industry.