- Microsoft lays off 1,900 gaming staff months after Activision deal.
- Cuts seek to align roles and build sustainable cost structure.
- Gaming industry carnage persists in 2023 with over 5,600 layoffs year-to-date.
Microsoft layoffs
Just months after finalizing its $68.7 billion Activision Blizzard acquisition, Microsoft announced layoffs impacting 1,900 employees, about 8.6% of its gaming division staff.
The cuts come as Microsoft looks to align and consolidate roles following the mega-merger.
Blizzard President Mike Ybarra also revealed he would depart with the integration complete, thanking affected employees for their meaningful contributions.
Microsoft Gaming CEO Phil Spencer, in an internal memo, cited “identified areas of overlap” in rationalizing the restructuring for a “sustainable cost structure.”
Gaming industry turmoil
The gaming industry carnage continues in 2023’s early days, with over 5,600 layoffs across major players year-to-date.
However, some affected Microsoft gaming staff have union representation, requiring negotiation over severance terms.
While asserting the layoffs will enable investment in priority growth areas, the abrupt move signals post-acquisition growing pains for Microsoft’s expanding gaming empire.
The company will offer transition support amidst workplace disruption on a difficult day.
