Microsoft Cuts 1,900 Jobs in Gaming Division Three Months After Activision Blizzard Acquisition

by Jim Hᴏft at

Microsoft has announced a significant reduction in its workforce, laying off approximately 1,900 employees in its gaming division. This move comes just over three months after the tech giant’s $69 million acquisition of video game maker Activision Blizzard.

The internal company memo, obtained by The Associated Press on Thursday, reveals that the job cuts amount to an 8% reduction of Microsoft’s 22,000-person gaming workforce. Impacted employees were from various teams including Activision Blizzard, Xbox, and ZeniMax — all under Microsoft’s umbrella.

Phil Spencer, CEO of Microsoft Gaming, commented in the memo, “As we move forward in 2024, we are committed to aligning on a strategy and execution plan with a sustainable cost structure to support our growing business.”

Blizzard President Mike Ybarra also announced his departure from the company on Thursday on X. In his post, Ybarra expressed support for the impacted employees.

“I want to thank everyone who is impacted today for their meaningful contributions to their teams, to Blizzard, and to players’ lives. It’s an incredibly hard day and my energy and support will be focused on all those amazing individuals impacted – this is in no way a reflection on your amazing work. If there’s anything I can help with, connections, recommendations, etc., DM me.”

“To the Blizzard community: I also want to let you all know today is my last day at Blizzard. 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.”