What Is Happening with MASS Xbox Layoffs?

Microsoft's Latest Workforce Changes: 1,900 Layoffs at Activision Blizzard and Xbox. Microsoft is undergoing significant workforce adjustments this week, resulting in 1,900 layoffs at both Activision Blizzard and Xbox. The layoffs primarily impact Activision Blizzard roles, but some Xbox and ZeniMax employees will also feel the impact.

This move equates to around 8 percent of the entire Microsoft Gaming division, totaling approximately 22,000 employees. An internal memo from Microsoft Gaming CEO Phil Spencer confirms these layoffs and expresses a commitment to developing a sustainable cost structure aligned with the company's strategy.

The proposed layoffs come just over three months after the integration of Activision, Blizzard, and King teams into Microsoft. The internal memo outlines a commitment to setting priorities, identifying overlaps, and ensuring alignment for optimal growth opportunities. However, it also acknowledges the necessity of reducing the gaming workforce by approximately 1,900 roles.

Blizzard president Mike Ybarra has also chosen to leave the company, with Microsoft planning to announce a new Blizzard president next week. Additionally, Blizzard's Chief Design Officer, Allen Adham, is departing, leaving an enduring impact on the company.

As part of these changes, Blizzard's previously announced survival game has been canceled. Microsoft plans to redirect some of the resources from this project to other promising ventures in Blizzard's early stages of development.

While these decisions are challenging, the company pledges full support for impacted employees during the transition, including severance benefits aligned with local employment laws. Microsoft remains focused on a more streamlined strategy for sustainable growth across Microsoft Gaming.

The layoffs follow Microsoft's $68.7 billion acquisition of Activision Blizzard in October and are part of broader changes in the gaming industry. The company aims to balance its talent and resources to meet evolving priorities and deliver ambitious games to a broader audience.