Microsoft Announces Layoffs of 1,900 Staff in Video Game Workforce Following Activision Blizzard Acquisition
In a surprising turn of events, Microsoft has announced that it will be cutting 1,900 staff from its video game workforce. This news comes shortly after the company’s acquisition of Call of Duty owner Activision Blizzard and the departure of its controversial former boss, Bobby Kotick. The layoffs are expected to have a significant impact on the gaming industry, with many employees now facing an uncertain future.
Xbox boss Phil Spencer addressed the situation in a message to staff, expressing his commitment to providing support during this transition period. He stated, “We will provide our full support to those who are impacted during the transition, including severance benefits informed by local employment laws.” While Microsoft has yet to comment on the matter, it is clear that these layoffs are a result of the company’s efforts to align its gaming workforce with its long-term strategy.
The decision to downsize the gaming workforce by approximately 1,900 roles out of a total of 22,000 employees was not an easy one. Spencer acknowledged the contributions of those affected, stating, “The people who are directly impacted by these reductions have all played an important part in the success of Activision Blizzard, ZeniMax, and the Xbox teams, and they should be proud of everything they’ve accomplished here.”
The layoffs have also resulted in the departure of Blizzard Entertainment President Mike Ybarra, who posted a heartfelt statement on Twitter. Ybarra expressed his gratitude to the impacted individuals and assured them that he would be available to offer support and assistance. He also announced that he would be leaving Blizzard, stating, “Having already spent 20+ years at Microsoft and with the acquisition of Activision Blizzard behind us, it’s time for me to (once again) become Blizzard’s biggest fan from the outside.”
In addition to Ybarra, Blizzard’s chief design officer and co-founder Allen Adham will also be leaving the company. This news is accompanied by the cancellation of the long-awaited survival game, Odyssey. It appears that the entire survival game team has been let go, as indicated by tweets from former Blizzard staff members.
The layoffs at Microsoft’s gaming teams have not come as a complete surprise, as there were already significant cuts to marketing budgets prior to the announcement. Unfortunately, layoffs have become increasingly common in the video game industry, even among companies that continue to generate substantial profits. The Communications Workers of America (CWA), which represents gaming workers across Microsoft subsidiaries, including ZeniMax Studios and Activision Blizzard, expressed their support for those affected by the layoffs. They also emphasized the importance of union representation in protecting workers’ rights and advocating for greater transparency and layoff protections.
These recent developments come on the heels of Xbox’s showcase, where they unveiled several highly anticipated exclusive games. The showcase featured titles such as MachineGames’ Indiana Jones and the Great Circle, Obsidian’s Avowed, Ninja Theory’s Hellblade 2, and Oxide Games’ Ara: History Untold. The layoffs serve as a stark reminder that even in an industry filled with blockbuster hits, job security remains a pressing concern for many employees.
The video game industry has been grappling with mass layoffs for some time now. In 2023 alone, it is estimated that over 10,000 workers were laid off, and unfortunately, 2024 doesn’t seem to be offering much respite. A recent survey conducted by the Game Developers Conference (GDC) revealed that one-third of all game developers were directly impacted by layoffs last year or witnessed them within their companies.
As the gaming industry continues to evolve and adapt, it is crucial for companies to prioritize the well-being and job security of their employees. While layoffs may sometimes be necessary for strategic reasons, it is essential to handle them with compassion and provide adequate support to those affected. Only by coming together as workers can the industry establish greater transparency, policies, and protections that safeguard the livelihoods of its talented workforce.
In conclusion, Microsoft’s decision to lay off 1,900 staff members from its video game workforce has sent shockwaves through the industry. The acquisition of Activision Blizzard and the departure of key figures have undoubtedly played a role in this restructuring. As the gaming industry grapples with ongoing layoffs, it is crucial for companies to prioritize the well-being of their employees and work towards establishing greater job security and protections. Only then can the industry continue to thrive and bring joy to players worldwide.