Microsoft has made some tough decisions this week, impacting nearly 1,900 employees across Activision Blizzard and Xbox. While the main brunt of the layoffs hits Activision Blizzard, some folks from Xbox and ZeniMax are also affected.
This amounts to about 8 percent of the total workforce in Microsoft’s Gaming division, which stands at roughly 22,000 employees. The news was confirmed via an internal memo from Microsoft Gaming CEO Phil Spencer, obtained by The Verge.
In addition to the layoffs, there’s also news of a significant departure. Blizzard president Mike Ybarra has decided to move on from the company. According to an internal memo from Microsoft’s game content and studios president, Matt Booty, Ybarra, who had a long stint at Microsoft previously, decided it was time to bid farewell after seeing through the acquisition as Blizzard’s president.
There are changes in leadership in the pipeline too. Microsoft plans to announce a new president for Blizzard next week. Also, Allen Adham, Blizzard’s chief design officer and one of its cofounders, is also leaving. Booty acknowledges Adham’s wide-reaching influence on Blizzard’s games and mentions Adham’s intention to continue mentoring young designers in the industry.
As part of these shifts, Blizzard’s previously announced survival game is also being scrapped. However, Microsoft reassures that the talent previously assigned to this project will be redirected to other promising ventures in Blizzard’s pipeline.
These layoffs come at a time when several other big names in the industry, including Riot Games, Google, Discord, Twitch, Unity, eBay, among others, have also announced cuts.
This downsizing follows Microsoft’s massive $68.7 billion acquisition of Activision Blizzard in October, which came after nearly two years of regulatory hurdles. Bobby Kotick, former CEO of Activision Blizzard, stepped down at the end of December, with Microsoft opting not to directly replace him. Instead, a group of Activision Blizzard executives now report to Matt Booty.
This latest round of layoffs arrives just months after significant changes in Xbox leadership, including Sarah Bond’s promotion to Xbox president, overseeing all Xbox platform and hardware endeavors. Booty himself was also promoted to president of game content and studios, now responsible for Bethesda, ZeniMax studios, and Activision Blizzard.
Microsoft’s last major round of layoffs was announced a year ago, affecting 10,000 employees. The company is gearing up to report its fiscal Q2 2024 earnings next week, which will, for the first time, reflect the impact of the Activision Blizzard acquisition.
Conclusion –
In conclusion, Microsoft’s recent layoffs at Activision Blizzard and Xbox, along with key departures, signify major changes in the gaming industry, highlighting the evolving landscape under the company’s stewardship.
