Microsoft Cuts 1,900 Gaming Jobs After Activision Buyout, Cancels Blizzard Survival Game

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Microsoft is laying off 1,900 employees from its gaming division, or roughly 9% of its workforce, mere months after finalizing its $69 billion acquisition of Activision Blizzard. Microsoft isn’t only limiting its maneuvering to personnel, as it’s also cancelling a survival game project that Blizzard had been working on for several years.

Phil Spencer, head of Xbox, sent a memo to employees to inform them of the moves the company is making to reach a “sustainable cost structure that will support the whole of our growing business.” Spencer also said that the company is committed to handling the process as thoughtfully as possible. However, things might not be going so smoothly as video game reporter Jason Schreier shared on social media that Xbox employees were reaching out to him to ask if their jobs are at risk.

As part of this shakeup, Blizzard president Mike Ybarra will be leaving the company. It’s a surprising departure considering that Ybarra had been at Xbox before moving over to Blizzard in 2019. Ybarra went on X, formerly known as Twitter, to share his thoughts on the layoffs by saying that “with the acquisition of Activision Blizzard behind us, it’s time for me to (once again) become Blizzard’s biggest fan from the outside.”

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Yabarra isn’t the only member of Blizzard’s leadership team to head out the door. Blizzard’s chief design officer, Allen Adham, will also be exiting the company. Xbox executive Matt Booty shared news of this departure through an internal memo, stating that Adham’s “influence will be felt for years to come, both directly and indirectly as Allen plans to continue mentoring young designers across the industry.”

It’s very odd to see that a company such as Microsoft has $69 billion to spare to complete the acquisition, yet somehow doesn’t seem to have enough money to keep 1,900 people employed. Hopefully these mass job losses slow down for the rest of 2024.