Activision Blizzard and Xbox hit with significant layoffs, Blizzard president leaves
Microsoft has confirmed the layoff of approximately 1,900 employees in its gaming division, affecting Activision Blizzard, Xbox, and ZeniMax. Blizzard President Mike Ybarra has also announced his departure from the company.
The details:
As reported by The Verge, Microsoft Gaming CEO Phil Spencer confirmed the layoffs in an internal memo to staff, stating that 8% of the company's 22,000 employees had been let go. "We have made the painful decision to reduce the size of our gaming workforce by approximately 1,900 roles out of the 22,000 people on our team," Spencer said in the message.
Spencer explained that the job cuts are part of Microsoft's new strategy and plans for achieving a "sustainable cost structure that will support the whole of our growing business."
The layoffs have primarily impacted Activision Blizzard, with Blizzard's survival game also canceled and its team relocated to other projects. It is unclear which areas of the three companies have been impacted by the cuts, but all employees will receive assistance, including severance benefits.
Blizzard’s chief design officer and co-founder, Allen Adham, is also leaving the company alongside Ybarra. Microsoft is now planning to announce the new president next week.
It was announced at the end of last year that Microsoft Gaming's leadership structure had changed significantly as a result of the acquisition of Activision Blizzard and the departure of former CEO Bobby Kotick. Matt Booty was named president of game content and studios, which meant that the publisher's executive would now report directly to him, while Sarah Bond became president of Xbox.
Other recent layoffs:
Black Forest Games, the developer of the Destroy All Humans remakes, has reportedly undergone major layoffs that will affect 50% of its workforce as part of Embracer's restructuring program.
Polish studio People Can Fly is reportedly undergoing layoffs after the budget for its project with Square Enix was reduced.
