Microsoft, whose market value recently exceeded $3 trillion for the first time, announced that it decided to lay off 1,900 people in its video game division, Microsoft Gaming. The new (the company laid off 10,000 employees last January) wave of layoffs at Microsoft became known from a speech to employees by Microsoft Gaming CEO Phil Spencer (Phil Spencer), already familiar to the media.

The cuts will account for 8% of Microsoft Gaming’s total workforce of approximately 22,000 employees. Most of the layoffs will affect Microsoft’s $68.7 billion acquisition of Activision Blizzard, but Xbox and ZeniMax (Bethesda) will also be affected.

However, it became known that Blizzard Entertainment left president Mike Ybarra (Mike Ybarra) and co-founder Allen Adam (Allen Adham), and the unnamed survival simulator in the new universe was canceled. Microsoft completed the acquisition of Activision Blizzard in October 2023 (Image source: IGN)

According to Spencer, the layoffs were a painful necessity as part of Microsoft Gaming and Activision Blizzard’s quest to implement a workable cost structure. “It will support our growing business”.

Spencer promised full support to staff affected by the cuts. “severance pay in accordance with local labor legislation”.

Microsoft “We will continue to invest in areas that drive our business growth and align with our strategy to bring more games to more players around the world.”.