Microsoft lays off 1,900 employees from Activision Blizzard, Xbox teams
What's the story
Microsoft will lay off 1,900 employees from Activision Blizzard and Xbox this week, as part of a strategy to focus on sustainable growth.
The reductions account for approximately 8% of the total Microsoft Gaming division (standing at 22,000 employees), with the majority cut expected to take place primarily at Activision Blizzard.
This move aims to better allocate talent and resources, allowing Blizzard and Xbox to create more ambitious games for a wider range of platforms and locations.
Insights
Affected employees will be provided with severance benefits
The layoffs will affect various teams within Activision Blizzard, including development teams, shared service organizations, and corporate functions.
As part of this restructuring, Blizzard will also cease development on its survival game project and reassign some employees to new projects in early development stages.
Affected employees will receive severance benefits based on local employment laws and support during the transition period.
Microsoft's latest move comes months after the Redmond-based company closed its $69 billion acquisition of Activision Blizzard last year.
President's departure
Activision Blizzard President Mike Ybarra also set to depart
Alongside the layoffs, Activision Blizzard President Mike Ybarra is also set to leave the company after overseeing the acquisition.
According to an internal memo from Microsoft's game content and studios president, Matt Booty, Ybarra had been contemplating his future and personal interests for some time.
After his departure, he plans to travel and spend more time with his family, said Booty.
A new Activision Blizzard President will be announced next week.
Information
Allen Adham, Activision Blizzard's Chief Design Officer, is also departing
Allen Adham, co-founder and Chief Design Officer of Activision Blizzard, is also departing from the company. Adham has significantly influenced all of Activision Blizzard's games. After leaving the company, he plans to mentor young designers throughout the industry.