Microsoft Lays Off 1,900 in Gaming Division, Citing Streamlining and New Projects
Microsoft lays off 1,900 employees in its gaming division, citing streamlining and new projects. The cuts affect Activision Blizzard and Xbox, with high-profile departures including Blizzard's president and co-founder. Part of a larger trend in tech industry layoffs due to economic pressures.
Microsoft Lays Off 1,900 in Gaming Division, Citing Streamlining and New Projects
In a significant restructuring move, Microsoft is laying off approximately 1,900 employees in its gaming division, accounting for about 9% of the workforce. The cuts are primarily affecting Activision Blizzard and Xbox, with high-profile departures including Blizzard's president, Mike Ybarra, and co-founder and design leader, Allen Adham.
According to Microsoft, the layoffs aim to "streamline operations" and "focus on new projects" following the acquisition of Activision Blizzard for $69 billion. The company has assured support for those affected, including severance packages based on local laws.
This move is part of a larger trend in the tech industry, where companies are downsizing to cope with economic pressures. The gaming sector has been particularly affected, with over 6,000 job losses this month alone.
Notably, Microsoft is also discontinuing work on a new survival game in development at Blizzard. However, the team members will be reassigned to other projects within the company.
The layoffs at Microsoft's gaming division come at a time when the industry is facing significant challenges. As the tech landscape continues to evolve, companies are adapting to new market realities. Microsoft's restructuring efforts aim to position the company for future success, but it comes at the cost of significant job losses.
Key Takeaways:
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Microsoft lays off approximately 1,900 employees in its gaming division (9% of the workforce)
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Cuts primarily affect Activision Blizzard and Xbox
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Blizzard's president, Mike Ybarra, and co-founder, Allen Adham, depart
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Layoffs aim to "streamline operations" and "focus on new projects" post-acquisition
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Support offered to affected employees, including severance packages
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Part of a larger trend in tech industry layoffs due to economic pressures
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The gaming sector was severely affected, with over 6,000 job losses this month
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Microsoft discontinues new survival game project but reassigns team members
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