Microsoft layoffs have struck the gaming sector of the massive tech company this morning. According to an internal memo obtained by IGN, 1,900 jobs have been cut, amounting to roughly 8.6% of the company’s workforce.
The memo was shared by Head of Xbox Phil Spencer, among internal Microsoft channels. Here’s the memo in full:
It’s been a little over three months since the Activision, Blizzard, and King teams joined Microsoft. 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.
As part of this process, we have made the painful decision to reduce the size of our gaming workforce by approximately 1,900 roles out of the 22,000 people on our team. The Gaming Leadership Team and I are committed to navigating this process as thoughtfully as possible. 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. 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. Those whose roles will be impacted will be notified, and we ask that you please treat your departing colleagues with the respect and compassion that is consistent with our values.
Looking ahead, we’ll 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.
Phil.
Microsoft has not commented publicly regarding the layoffs as of yet. As Phil stated above, these layoffs directly impact those who were involved in all of Microsoft’s major gaming branches, including Activision Blizzard and Zenimax. It’s likely that this wave of job cuts is a part of the company’s process of rebalancing following their $69 billion acquisition of Activision Blizzard last year.
Some notable figures have confirmed their departure from the company, including Blizzard Entertainment President Mike Ybarra:
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…
— Mike Ybarra 🎄 (@Qwik) January 25, 2024
We’re not even a month into 2024 and already it’s shaping up to slingshot past 2023’s total for video-game-related layoffs. It makes sense for Xbox to consolidate following a massive deal, but an immense number of lives have been directly affected as a result. Well over 5,500 positions have been affected since January 1 alone, and the number only grows. If developers don’t have job security, what do they have?
As of time of writing, we’re still waiting on Microsoft to release an official statement. We’ll be sure to update the story as we learn more.
Source: IGN
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I think my favorite part of this story is how Spencer went down to Blizzard and took a picture with a crowd of people he knew he was going to have laid off within months of the purchase.