Microsoft Gaming to Slash 1,900 Jobs Amid Acquisition Fallout

Microsoft Gaming announced plans to cut 1,900 jobs, accounting for approximately 9% of its workforce.

The decision outlined in a Thursday memo comes just over three months after the completion of the high-profile acquisition.

Microsoft Gaming CEO Phil Spencer cited the need for an “execution plan” aimed at reducing redundancies and streamlining operations within the company.

The move underscores the challenges of integrating two major gaming entities and aligning strategies following the $69 billion acquisition of Activision Blizzard, which closed in late 2023.

Former Blizzard president, Mike Ybarra, also disclosed his departure from Microsoft and Blizzard on social media, further highlighting the changes within the organization.

Spencer emphasized that the affected employees, who played integral roles in the success of Activision Blizzard, ZeniMax, and the Xbox teams, would be provided with full support, including severance benefits in accordance with local employment laws.

The decision reflects a commitment to navigating the restructuring process with thoughtfulness and compassion.

The layoffs at Microsoft Gaming contribute to a broader trend of job cuts across the tech industry, with several companies making deep cuts in their workforce in the early months of 2024.

Economic pressures and efforts to streamline operations have been cited as driving factors behind these decisions.

Despite the anticipated efficiencies following the merger, layoffs are often expected outcomes, and Microsoft’s share prices remained largely unchanged following the announcement.

The company’s focus now lies in aligning its strategy, optimizing its cost structure, and continuing to invest in growth opportunities amidst the evolving landscape of the gaming industry.