Microsoft laying off 1,900 employees at Xbox, Bethesda and Activision Blizzard

Microsoft is reportedly laying off 1,900 employees from its gaming divisions. The majority of the layoffs will be at Activision Blizzard which was recently acquired, some workers at Xbox and ZeniMax divisions will also be affected.

As reported by The Verge an internal memo from Microsoft Gaming CEO Phil Spencer confirmed the layoffs. Spencer mentioned that the downsizing is part of the company’s plan to reduce overlap and establish a “sustainable cost structure.” He assured that all affected workers will receive severance benefits by local employment laws. Looking ahead, Spencer expressed the company’s commitment to investing in growth areas and bringing “more games to more players around the world.”

The layoffs come a few months after Microsoft completed its $69 billion acquisition of Activision Blizzard and successfully integrated the Call of Duty publisher into its long list of gaming acquisitions.

The email from Phil Spencer issued to Microsoft employees reads:

“It’s been a little over three months since the Activision, Blizzard and King teams joined Microsoft. As we move forward in 2024, the leadership of Microsoft Gaming and Activision Blizzard is committed to aligning on a strategy and an execution plan with a sustainable cost structure that will support the whole of our growing business. Together, we’ve set priorities, identified areas of overlap and ensured that we’re all aligned on the best opportunities for growth.”

Microsoft laying off personnel comes as more and more gaming/tech firms are downsizing in some capacity. When we take a look at the first few weeks of this year alone, Google laid off around 1,000 employees, Unity laid off around 25 percent of its staff, and Twitch reduced its workforce by about 33 percent.