Mircrosoft’s recent acquisition of Activision Blizzard has resulted in around 1,900 employees being laid off, which represents about 9% of its total workforce. The layoffs are primarily focused at Activision Blizzard, known for popular games like Obligations series, World of Warcraft, and Supervision. Some Xbox employees will also be affected by the layoffs. Microsoft Gaming CEO Phil Spencer explained in an internal memo that the decision was made to align priorities and identify areas of overlap for better growth opportunities.
Furthermore, former Blizzard president Mike Ybarra and design director Allen Adham will be stepping down after the acquisition. Ybarra’s departure came after he welcomed the acquisition as the president of Blizzard, leading to his decision to leave the company. Matt Booty, Microsoft’s president of game studios and content, expressed gratitude to all those affected by the layoffs for their contributions to their teams, Blizzard, and the players.
Moreover, as a result of the layoffs, Blizzard’s previously announced survival game has been cancelled. This game would have been Blizzard’s first new property since 2016. However, some of the developers from the cancelled project will be reassigned to other promising new projects in the early stages of development at Blizzard.
The tech and gaming industry has been experiencing a wave of layoffs, with other companies like Riot Games and eBay also reducing their workforce sizes. Last year, Microsoft itself had laid off 10,000 employees. The recent layoffs at Microsoft following the acquisition of Activision Blizzard are part of a larger trend in the industry, reflecting the evolving landscape of the gaming sector.
Overall, the layoffs at Microsoft are impacting a significant number of employees and have led to the cancellation of a major project at Blizzard. The industry as a whole is facing challenges in terms of workforce reductions, indicating a period of transition and change within the gaming and tech sector.
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