Microsoft lays off 1,900 after $69B Blizzard deal
Microsoft is set to reduce its gaming unit workforce by approximately 1,900 employees, amounting to around 9% of the division’s total headcount.
The announcement came from Microsoft Gaming CEO Phil Spencer in a memo to staff on Thursday. He explained that the layoffs are a crucial part of the company’s restructuring plan, aimed at integrating Activision Blizzard with its other gaming operations.
The Washington Statebased tech giant, with several offices in the Bay Area, closed on its $69 billion acquisition of Activision Blizzard just over three months ago, in October. The gaming company’s president, Mike Ybarra, revealed he would also be leaving.
“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,” Ybarra wrote on X.
The affected employees were part of the Activision Blizzard, ZeniMax and Xbox teams, and Spencer said “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.”
Microsoft Gaming’s headcount was 22,000 employees before the layoffs, which represented about 8.6% of the team and less than 1% of Microsoft’s global workforce.
“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,” Spencer wrote in the memo. “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.”
The state Employment Development Department said it had not received a WARN notice, which requires a 60-day notice to the affected employees as well as state and local representatives before a mass layoff.
Microsoft’s announcement came a day after online auction site eBay disclosed plans to eliminate approximately 1,000 positions, about 9% of full-time employees, while software giant SAP revealed intentions to lay off 8,000 employees, following deep cuts at Amazon, Google and other major tech companies.
On Thursday, digital media company Business Insider also announced a staff reduction of 8% as part of its restructuring plan.
“We have already begun to refocus teams and invest in areas that drive outsize value for our core audience,” Business Insider CEO Barbara Peng said in a memo to staffers. “Unfortunately, this also means we need to scale back in some areas of our organization.”
Business Insider, founded in 2007 by former Wall Street analyst CEO Henry Blodget and acquired by Axel Springer in 2015 for $343 million, had previously undergone a workforce reduction of about 10% in April.