Current:Home > NewsMicrosoft layoffs: 1,900 workers at Activision Blizzard and Xbox to be let go-DB Wealth Institute B2 Expert Reviews
Microsoft layoffs: 1,900 workers at Activision Blizzard and Xbox to be let go
View Date:2025-01-13 15:25:45
Microsoft will lay off 1,900 employees at Activision Blizzard and Xbox, the latest tech company to announce cuts so far in 2024.
The layoffs represent about an 8% cut of its video gaming staff of 22,000 workers and come months after Microsoft acquired Activision in a blockbuster deal. The $69 billion transaction in October represented one of the largest tech deals in history as Microsoft took over the studios behind bestselling games like Call of Duty, Diablo and Overwatch for its Xbox console.
The planned cuts are part of a larger “execution plan” that would reduce “areas of overlap,” Microsoft Gaming CEO Phil Spencer wrote in an internal memo, which was quoted in multiple news reports.
"We are grateful for all of the creativity, passion and dedication they have brought to our games, our players and our colleagues," Spencer is quoted as saying in the memo. "We will provide our full support to those who are impacted during the transition."
Microsoft confirmed news of the layoffs when reached Thursday by USA TODAY but declined to provide a copy of the memo.
Layoffs:Business Insider to lay off around 8% of employees in latest media job cuts
Blizzard executives announce resignations
Microsoft's acquisition of Activision Blizzard was seen as a strategy to keep pace with Sony and Nintendo in a console race by adding more games to its multi-game subscription service and cloud gaming libraries.
Microsoft’s Xbox gaming console, which ranks third in sales behind PlayStation and Nintendo, seeks to fold Activision titles into its Game Pass service, which isn't unlike Netflix but for video games.
The Wall Street Journal reported that the planned cuts, which mostly target Activision Blizzard employees, reflect "redundancies" after the October acquisition of video game company. Spencer said in the cited memo that Microsoft would provide location-dependent severance to all laid-off employees.
Alongside the layoffs, two Blizzard Entertainment executives are leaving the company, President Mike Ybarra and design chief Allen Adham, a Microsoft spokesman told multiple outlets.
Ybarra confirmed the news himself of his immediate departure in a post Thursday on social media platform X.
"Leading Blizzard through an incredible time and being part of the team, shaping it for the future ahead, was an absolute honor," Ybarra said in the post.
Other tech layoffs in the news
Several big-name companies have already announced 2024 job cuts, including Amazon, eBay and Google. It remains to be seen whether this year will play out like 2023, which yielded more than 300,000 layoffs, according to Forbes, which tracks major announcements.
In the tech sector, at least, job cuts are fewer this year than last. Another layoff tracking site, Layoffs.fyi, reports that 76 tech companies had announced 21,370 layoffs through late January. By contrast, 277 firms had laid off 89,709 workers through January 2023.
But some economists foresee more layoffs to come, amid talk of a possible economic slowdown later in 2024.
veryGood! (31622)
Related
- Jennifer Hudson, Kylie Minogue and Billy Porter to perform at Macy’s Thanksgiving Parade
- Jobs report for December will likely conclude another solid year of US hiring in 2023
- Many people wish to lose weight in their arms. Here's why it's not so easy to do.
- FDA gives Florida green light to import drugs in bulk from Canada
- Halle Berry surprises crowd in iconic 2002 Elie Saab gown from her historic Oscar win
- The Supreme Court will decide if Trump can be kept off 2024 presidential ballots
- Here's how to smoke ribs or brisket in your kitchen: GE Profile's Smart Indoor Smoker
- New round of Epstein documents offer another look into his cesspool of sexual abuse
- As CFP rankings punish SEC teams, do we smell bias against this proud and mighty league?
- Is 'the spark' a red flag? Sometimes. Experts say look for this in a relationship instead
Ranking
- Powerball winning numbers for November 11 drawing: Jackpot hits $103 million
- Cecil the dog ate through $4,000 in cash. Here's how his Pittsburgh owners got the money back.
- US fugitive accused of faking his death to avoid rape charge in Utah is extradited from Scotland
- Police officer convicted of killing a Colorado man is set to learn if he will spend time behind bars
- The 15 quickest pickup trucks MotorTrend has ever tested
- 'Memory': Jessica Chastain didn't want to make a 'Hollywood cupcake movie about dementia'
- Former Alabama police officer charged with murder in shooting of Black man
- Alabama man accused of stripping, jumping naked into Bass Pro Shop aquarium: Reports
Recommendation
-
Fantasy football Week 11: Trade value chart and rest of season rankings
-
Ohio State football lands transfer quarterback Will Howard from Kansas State
-
From Houthis to Hezbollah, a look at the Iran-allied groups rallying to arms around Middle East
-
NYC subway crews wrestle derailed train back on tracks, as crash disrupts service for second day
-
Firefighters make progress, but Southern California wildfire rages on
-
Shia LaBeouf converts to Catholicism, reportedly wants to become a deacon
-
Vanderpump Rules' Ariana Madix Sues Ex Tom Sandoval Over Shared House
-
Boy gets Christmas gifts after stolen car and presents are recovered