Microsoft has laid off 1,900 workers from its Activision Blizzard and Xbox divisions. While most of the layoffs involve Activision Blizzard, some employees at Xbox and ZeniMax (which includes Bethesda) will also be cut.
In total, approximately 8% of the total workforce of the Microsoft Gaming division, which has about 22,000 employees, will be cut. The Verge obtained an internal memo from Microsoft Gaming CEO Phil Spencer confirming the layoffs:
It’s been just over three months since Activision, Blizzard and King joined Microsoft. In 2024, Microsoft Gaming and Activision Blizzard are committed to aligning the strategy and execution plan with a sustainable cost structure that will support our entire growing business. Together, we set priorities, identified areas of intersection, and ensured that we all aligned on the best opportunities for growth.
As part of this process, we have made the painful decision to reduce our gaming team by approximately 1,900 positions out of the 22,000 people that work on our team. The Gaming Leadership Team and I strive to approach this process as carefully as possible. The people directly affected by these cuts have been instrumental in the success of Activision Blizzard, ZeniMax and Xbox, and they should be proud of what they’ve accomplished here. We are grateful to them for the creativity, passion and dedication they bring to our games, our players and our colleagues. We will provide full support to those affected by the transition period, including severance pay in accordance with local employment laws. Those whose roles will be changed will be notified, and we ask that you treat your colleagues with respect and compassion, consistent with our values.
Going forward, we 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. While this is a challenging time for our team, I am more confident than ever in your ability to create and develop games, stories, and worlds that bring players together.
Phil
The layoffs come in the same month that Riot Games, Google, Discord, Twitch, Unity, eBay and others announced layoffs. Microsoft completed its $68.7 billion acquisition of Activision Blizzard in October after a 20-month battle with regulators in the United Kingdom and the United States. Former Activision Blizzard CEO Bobby Kotick stepped down at the end of December, and Microsoft has not named a direct replacement. Instead, a number of Activision Blizzard executives now report to Microsoft’s president of game content and studios, Matt Booty.
Microsoft + Activision Blizzard – the British antitrust regulator approved the merger agreement for a record $68.7 billion (updated – the transaction is completed)
Today’s layoffs come months after a major change in Xbox leadership, with Sarah Bond named president of Xbox to lead all work on the Xbox platform and hardware. Matt Booty has also been named president of game content and studios, which includes oversight of Bethesda, ZeniMax and Activision Blizzard studios.
