Microsoft slashes 1,900 jobs across Xbox and Activision Blizzard

We’re not even one month into 2024 and it’s already been anther brutal year for workers in the video game industry. Microsoft is the latest company to announce a major round of layoffs in its gaming division as it’s cutting around 1,900 workers from its Xbox, Activision Blizzard and ZeniMax (aka Bethesda) teams. That brings the total number of video game layoffs this year to around 6,000 already. There were around 9,000 layoff in the industry in all of 2023, according to some estimates.

“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 Gaming CEO Phil Spencer told employees in a memo obtained by The Verge. “As part of this process, we have made the painful decision to reduce the size of our gaming workforce by approximately 1900 roles out of the 22,000 people on our team.”

The majority of the cuts are said to be within Activision Blizzard, three months after Microsoft finally closed its $68.9 billion takeover over the publisher. Some positions on he Xbox and ZeniMax teams will be affected too.

“The people who are directly impacted by these reductions have all played an important part in the success of Activision Blizzard, ZeniMax and the Xbox teams, and they should be proud of everything they’ve accomplished here,” Spencer reportedly wrote. “We are grateful for all of the creativity, passion and dedication they have brought to our games, our players and our colleagues. We will provide our full support to those who are impacted during the transition, including severance benefits informed by local employment laws.”

Spencer added that Microsoft will “continue to invest in areas that will grow our business and support our strategy of bringing more games to more players around the world. Although this is a difficult moment for our team, I’m as confident as ever in your ability to create and nurture the games, stories and worlds that bring players together.”

The cuts equate to around eight percent of Microsoft’s gaming division. Engadget has contacted the company for comment.

Among those leaving the company is Blizzard president Mike Ybarra, who is reportedly leaving of his own accord. “I want to thank everyone who is impacted today for their meaningful contributions to their teams, to Blizzard, and to players’ lives. It’s an incredibly hard day and my energy and support will be focused on all those amazing individuals impacted — this is in no way a reflection on your amazing work,” Ybarra wrote on X.

“To the Blizzard community: I also want to let you all know today is my last day at Blizzard. Leading Blizzard through an incredible time and being part of the team, shaping it for the future ahead, was an absolute honor,” Ybarra continued. “Having already spent 20+ years at Microsoft and with the acquisition of Activision Blizzard behind us, it’s time for me to (once again) become Blizzard’s biggest fan from the outside.”

Microsoft’s game content and studios president Matt Booty is said to have told staff that the company plans to appoint a new Blizzard president next week, while the publisher’s Allen Adham is also moving one.

One other major consequence of this reorganization, according to The Verge, is that Blizzard’s survival game has been cancelled. The game would have marked Blizzard’s entry into a new genre, but it did not reveal any other details about the project since announcing it two years ago. Some of the developers who were working on the survival game are being moved over to “one of several promising new projects Blizzard has in the early stages of development,” Booty reportedly wrote.

This story is developing; please refresh for updates.