Microsoft Announces Significant Layoffs: Activision Blizzard and Xbox Lose Nearly 2,000

Major Reductions at Activision Blizzard and Xbox

Microsoft has recently announced a considerable reduction in its workforce, affecting around 1,900 employees within its Gaming division, which encompasses Activision Blizzard and Xbox. This decision translates to an 8% cut from the division's total staff of approximately 22,000. The move is part of a broader strategy to refocus on high-impact projects and establish a more sustainable future for the company's gaming ventures.

Leadership Changes and Project Cancellations

In addition to the layoffs, Blizzard President Mike Ybarra has decided to leave the company, marking a significant change in the company’s leadership. Allen Adham, another key figure at Blizzard, is also departing. Furthermore, Microsoft has decided to cancel the development of Blizzard's survival game, a project that had been in the works, as part of its strategic realignment.

Internal Communications and Future Directions

An internal memo, discovered by The Verge, from Microsoft Gaming CEO Phil Spencer highlights the necessity of these changes, stressing the need for a sustainable cost structure. The company plans to focus on growth areas and align its resources towards promising opportunities. This restructuring comes amid a series of recent layoffs in the gaming industry and follows Microsoft's acquisition of Activision Blizzard, which was completed last year.

These layoffs represent a significant shift in Microsoft's approach to its gaming business, marking a period of transition and realignment for the company's gaming endeavors.