Microsoft is laying off around 1,900 members of staff from its games division.
That's according to IGN, which reports that Xbox boss Phil Spencer has announced these massive cuts in an internal memo. The exec says that Microsoft will be providing "full support" to those affected. 8.6 per cent of Xbox's workforce is affected by this round of layoffs.
This comes in the wake of Microsoft closing its $68.7 billion acquisition of Activision Blizzard at the tail end of 2023. The tech giant recently crossed $3 trillion market cap, becoming the second firm to do so.
“It’s been a little over three months since the Activision, Blizzard, and King teams joined Microsoft," Spencer wrote.
"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."
