On January 25th local time, Microsoft announced that it will make personnel adjustments to its gaming department. It is reported that Microsoft's gaming department will lay off 1900 employees, which is about 8% of Microsoft's gaming department staff. The employees involved in this layoff are mainly from Activision Blizzard, ZeniMax, and Xbox teams.
Microsoft Games CEO Phil Spencer said the layoff was a "painful decision". Regarding the specific reasons for layoffs, Microsoft mentioned that as we enter 2024, the leadership of Microsoft Games and Activision Blizzard are committed to aligning their strategies and execution plans with a sustainable cost structure. Both sides have jointly developed priorities and identified overlapping areas.
Another news disclosed alongside the layoffs is that Activision Blizzard President Mike YBarra and Chief Design Officer Allen Adham will leave the company, and a survival game previously announced by Activision Blizzard has also been cancelled.
In October 2023, Microsoft completed its acquisition of gaming company Activision Blizzard, which owns numerous globally renowned IPs such as World of Warcraft, Call of Duty, StarCraft, and Diablo. This acquisition lasted 22 months and was worth $69 billion, making it the largest transaction in Microsoft's history.