Many companies are trimming down their staff for 2024, and Microsoft is no exception. Many of these layoffs come from Activision Blizzard, though Xbox and ZeniMax employees will also be impacted. These layoffs come in the same month as Riot Games, Google, Discord, Twitch, Unity and eBay. Estimated cuts are roughly 8% of the overall Microsoft Gaming division (which previously sat at 22,000 employees),
CEO Memo about Layoffs
CEO Phil Spencer wrote an internal memo that confirms the layoffs:
“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 1900 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.“
The Future of Activision Blizzard and Xbox Studios
“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.”
Mike Ybarra, Blizzard president, will also be leaving the company. In an internal memo from Microsoft’s game content and studios president, Matt Booty, had this to say: “As many of you know, Mike previously spent more than 20 years at Microsoft. Now that he has seen the acquisition through as Blizzard’s president, he has decided to leave the company”. Allen Adham, Blizzard’s chief design officer, is joining Ybarra in leaving the company. Booty says: “As one of Blizzard’s cofounders, Allen has had a broad impact on all of Blizzard’s games. His influence will be felt for years to come, both directly and indirectly as Allen plans to continue mentoring young designers across the industry”.
Blizzard’s previously announced survival game has been canceled amidst the changes. Microsoft 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”. In October, Microsoft finally completed its $68.7 billion acquisition of Activision Blizzard. Former Activision Blizzard CEO Bobby Kotick stepped down in December, replaced by Matt Booty. Microsoft previously announced layoffs a year ago, affecting 10,000 employees.
What impact will this have on the future of gaming? Which games are you most excited about from Microsoft and Activision Blizzard? Join us for more gaming news.
