Microsoft recently made a big move, snagging gaming giant Activision Blizzard for a whopping $68.7 billion. Now, they’re going through some changes, and unfortunately, it involves letting go 1,900 employees in their gaming divisions. That’s about 8.6% of the gaming team, which is made up of 22,000 individuals. This wave of layoffs is happening just three months after they sealed the deal, and it also means some shifts in leadership as Blizzard president Mike Ybarra is stepping down.
Mike Ybarra took a moment to recognize the impact of these layoffs and thank those affected for their hard work in their teams, Blizzard, and in the lives of players. In a statement, he made it clear that this tough transition doesn’t take away from the incredible work these individuals have done.
According to an internal memo from Microsoft Gaming CEO Phil Spencer, it’s all part of a grand plan to make things work smoothly and keep things financially sustainable. The memo identified areas where things overlap after the big acquisition. Microsoft confirmed the memo’s authenticity in an email to TechCrunch, promising support for the affected employees during this transition, including severance benefits that adhere to the local employment laws.
Now, the gaming industry as a whole is having a bit of a rough start to the year. Big players like Riot Games, the brains behind League of Legends, had to let go of 530 folks. Unity, the game engine folks, trimmed down their workforce by 1,800 positions (that’s a quarter of the team). Discord had to cut 17% of their workforce, which amounted to 170 jobs, and Amazon’s Twitch let go 500 employees (35% of their crew). According to game developer and consultant Rami Ismail, a total of 5,600 gaming employees have been handed pink slips in 2024, surpassing the entire number for 2023.
But it’s not just the gaming world feeling the heat. Other major tech players like Google, Amazon, and TikTok are also making some cuts. Looking back at the tech layoff data from 2023, it seems like January is a bit of a rough patch for job cuts across the industry.
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