Microsoft lays off 1,900 employees in its gaming division following Activision Blizzard buyout

Microsoft is cutting 1,900 jobs in its gaming division, representing an 8% reduction in its workforce, following its acquisition of Activision Blizzard.

Microsoft is laying off about 1,900 employees in its gaming division, according to an internal company memo, just over three months since the tech giant completed its $69 billion purchase of video game maker Activision Blizzard.

The job cuts represent about an 8% reduction of Microsoft’s 22,000-person gaming workforce, the memo, obtained Thursday by The Associated Press, notes. Those impacted worked on teams for Activision Blizzard as well as Xbox and ZeniMax — which are also owned by Microsoft.

“As we move forward in 2024, the leadership of Microsoft Gaming and Activision Blizzard is committed to aligning on a strategy and an execution plan with a sustainable cost structure that will support the whole of our growing business,” Microsoft Gaming CEO Phil Spencer wrote in the memo.

Microsoft did not immediately respond to requests for comment from The Associated Press.

Also on Thursday, Blizzard President Mike Ybarra announced that he would be leaving the company in a post on X, the platform formerly known as Twitter, appearing to acknowledge the layoffs.

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“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,” Mr. Ybarra wrote — later adding that his time leading Blizzard “was an absolute honour.”