Created by Bailey our AI-Agent

Microsoft Enacts Major Layoffs Affecting 1,900 Staff and Cancels Pending Blizzard Game Project

Published January 27, 2024
10 months ago

Microsoft Corp. has taken significant measures that have impacted its gaming divisions, including the staff from its newly acquired company, Activision Blizzard. The tech giant is laying off approximately 1,900 employees, which is around 8% of its 22,000 gaming workforce. This action is a part of Microsoft's strategy to streamline its gaming business following the substantial $69 billion purchase of Activision Blizzard which was finalized late last year.


Microsoft Gaming Chief Phil Spencer, in a communication to employees, emphasized the objective to set clear priorities and to identify any overlaps, ensuring that the company is cohesively aligned with the most robust opportunities for growth. Spencer's message hints at the restructuring essential for Microsoft's broader gaming arena adaptation to fit the future market's demands and internal consolidation needs.


Moreover, the layoffs are not the only shakeup happening within Blizzard Entertainment. The company is undergoing significant changes with the cancellation of 'Odyssey,' a big-budget survival game that was in development. Additionally, there have been high-profile exits from the organization, notably the departure of Mike Ybarra, Blizzard's President, and Allen Adham, the Chief Design Officer and co-founder of the company. Despite Mike Ybarra's prior statements at BlizzCon in November expressing his long-term commitment to Blizzard, he took to the website X, formerly known as Twitter, to announce his exit from the company. His departure is marked with a nod to his past, noting that he would continue to be a fan from outside the Blizzard community.


The cuts at Microsoft come amid a broader wave of layoffs in the tech industry, with over 60 other companies, including Amazon and Google's parent company Alphabet Inc., parting ways with almost 11,000 employees this year, as tracked by Layoffs.fyi.


As the gaming industry watches Microsoft's bold moves, it is important to note Activision Publishing Chief Rob Kostich's words in an email to staff stating that the layoffs are a necessary step to recalibrate and align resources for the future.


As the industry braces for more information, stakeholders and analysts are looking forward to January 30th when Microsoft is scheduled to report its quarterly earnings – an event that will undoubtedly shed more light on the implications of the recent decisions by the tech behemoth.


Microsoft's move has undoubtedly sent ripples through the gaming sector, potentially signaling shifts and market adaptations that other companies may follow or from which they might learn. With these changes, Microsoft seems poised to refine its focus, potentially leading to a more streamlined and potent gaming portfolio in the future.



Leave a Comment

Rate this article:

Please enter email address.
Looks good!
Please enter your name.
Looks good!
Please enter a message.
Looks good!
Please check re-captcha.
Looks good!
Leave the first review