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Microsoft (NASDAQ:MSFT) is laying off 1,900 employees at its gaming division, affecting roles at Activision Blizzard, Xbox, and Zenimax, The Verge reported, citing a memo by Microsoft Gaming CEO Phil Spencer.
The layoffs, which represent about 9% of Microsoft Gaming’s 22,000 employees, will primarily impact employees at Call of Duty maker Activision Blizzard, the report added.
Just as in 2023, layoffs have hit the video game industry in 2024. Last week, Tencent's (OTCPK:TCEHY) (OTCPK:TCTZF) Riot Games announced it was laying off 530 employees, or 11% of its workforce. In early January, Unity (U) announced a 25% reduction in workforce, while Amazon's (AMZN) live-streaming site Twitch announced plans to cut about 35% of its workforce.
Blizzard president Mike Ybarra, who previously served at Microsoft for 20 years, will also be departing. "It was great to be part of the team that built Blizzard and ATVI over the years. I've decided to transition out now that it's merging with MSFT," said Ybarra in a post on LinkedIn.
According to the report, Microsoft intends to appoint a new Blizzard president next week. Allen Adham, Blizzard’s chief design officer, will also step down. A previously announced survival game by Blizzard has also received the axe.
Microsoft closed its $69 billion acquisition of Activision Blizzard in October 2023, after a lengthy battle with U.S. and UK regulators.