Close to 2,000 jobs cut from Activision Blizzard, Xbox

1,900 people are expected to lose their jobs following a massive layoff by Microsoft on two of its gaming divisions: Activision Blizzard and Xbox.

The Verge first reported that the said layoffs were announced via an internal memo sent by Microsoft Gaming CEO Phil Spencer.

“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,” Spencer said via the memo obtained by The Verge.

This accounts for 8% of the Microsoft Gaming workforce. Activision Blizzard is expected to take the brunt of the layoffs, with roles in Xbox and ZeniMax also affected.

Blizzard President Mike Ybarra has also left the company following the layoffs. In a statement on his X (formerly Twitter) account, Ybarra thanked those affected for their contributions to the company.

“Leading Blizzard through an incredible time and being part of the team, shaping it for the future ahead, was an absolute honor. Having already spent 20+ years at Microsoft and with the acquisition of Activision Blizzard behind us, it’s time for me to (once again) become Blizzard’s biggest fan from the outside,” Ybarra said.

Activision Blizzard was recently acquired by Microsoft, following a series of legal battles with regulators in the UK and the USA.

In another memo obtained by The Verge, Microsoft game content and studios head Matt Booty said support will be provided to those affected by the layoffs, which span multiple regions worldwide.

Booty also announced that Blizzard’s survival game development will be halted following the layoffs.

“The changes announced today reflect a focus on products and strategies that hold the most promise for Blizzard’s future growth, as well as identified areas of overlap across Blizzard and Microsoft Gaming. Today’s actions affect multiple teams within Blizzard, including development teams, shared service organizations and corporate functions. As part of this focus, Blizzard is ending development on its survival game project and will be shifting some of the people working on it to one of several promising new projects Blizzard has in the early stages of development,” Booty said in the memo obtained by The Verge.

This is the second big gaming industry layoff to hit the same week, following those of Riot Games, who released 530 workers last Tuesday.