Microsoft is downsizing its gaming groups.
These layoffs, confirmed by Microsoft Gaming CEO Phil Spencer, represents an 8 to 9 p.c discount of the full workforce within the firm’s gaming division
Microsoft joins the rising listing of expertise firms which have undergone workforce reductions for the reason that begin of 2024. Having just lately attained a market capitalization of $3 trillion, the Redmond-based tech big has made an official announcement relating to the approaching layoff of 1,900 staff from its Activision Blizzard and Xbox divisions. These layoffs are anticipated to enter impact as quickly as this present week.
These layoffs, confirmed by Microsoft Gaming CEO Phil Spencer in an inner memo, represents an 8 to 9 p.c discount of the full workforce within the firm’s gaming division, which at the moment employs a complete of twenty-two,000 people.
Spencer says that that is a part of “aligning on a strategy” and having a “plan with a sustainable cost structure” after the Activision Blizzard acquisition three months in the past. Spencer added, “Together, we’ve set priorities, identified areas of overlap, and ensured that we’re all aligned on the best opportunities for growth.”
Spencer additional claimed that the corporate will present severance advantages in accordance with relevant native employment legal guidelines to affected staff, and that it’ll convey the identical quickly.
Alongside the layoffs, Blizzard President Mike Ybarra may even be leaving the tech big. “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,” mentioned Matt Booty, Microsoft’s sport content material and studios president.
That being mentioned, Microsoft has joined the ranks of tech giants comparable to Google, Amazon, Duolingo, and TikTook in implementing workforce reductions within the 12 months 2024, all occurring inside a short span of roughly 20-25 days. Notably, Microsoft’s actions come shortly after the completion of its acquisition of Activision Blizzard, valued at $68.7 billion.
