Microsoft layoffs 1,900 employees post Activision Blizzard acquisition

Activision Blizzard layoffs: Three months following the completion of its $68.7 billion acquisition of gaming giant Activision Blizzard, Microsoft is set to lay off 1,900 employees in its gaming divisions, constituting around 8.6 per cent of the 22,000 Microsoft employees in the gaming sector. The announcement coincides with Blizzard president Mike Ybarra's decision to step down now that the acquisition has been finalised.

In a statement on X, Ybarra expressed gratitude to those impacted by the layoffs for their significant contributions, underlining that the decision does not diminish their outstanding work. The move aligns with Microsoft's execution plan aimed at establishing a sustainable cost structure and addressing areas of overlap identified after the acquisition.

An internal memo from Microsoft Gaming CEO Phil Spencer, outlined the layoffs as part of a strategy to ensure a sustainable cost structure. The memo confirmed that support, including severance benefits informed by local employment laws, will be provided to affected employees.

The gaming industry has witnessed several layoffs in the first weeks of the year. Riot Games, Unity, Discord, and Twitch have all made significant staff reductions. According to game developer and consultant Rami Ismail, approximately 5,600 gaming employees have been laid off in 2024, surpassing half of the total gaming layoffs in 2023.

Notably, the tech industry as a whole has also faced layoffs, with companies like Google, Amazon, and TikTok making cuts. January appears to be a challenging month for layoffs, following the trend observed in 2023.

Over the past few years, certain departments within Microsoft and Activision have established some of the first gaming unions in the country. The Communications Workers of America, representing unionised workers, highlighted the benefits of unions in negotiating over the impact of layoffs. 

While CWA-represented members at Zenimax, Raven, and Blizzard Albany will not be affected by these cuts, the union expressed sadness over the disruption in the lives of dedicated and talented video game workers.