Microsoft lays off 1,900 video game employees

According to reports, Microsoft will lay off 1,900 gaming department employees. If true, the video game industry will lose 5,800 jobs in January alone.

The news was first broken by IGN, which claimed to have seen a memo from Xbox boss Phil Spencer. While it’s unclear exactly which teams within its gaming division are affected, the internal memo states that the people being laid off “have all played an important role in the success of the Activision Blizzard, ZeniMax and Xbox teams.”

The full memo posted by IGN is below:

“It’s been over three months since the Activision, Blizzard, and King teams joined Microsoft. As we move toward 2024, Microsoft Gaming and Activision Blizzard leadership are committed to aligning strategic and execution plans with a sustainable cost structure , to support our entire growing business. Together we set priorities, identify areas of overlap and ensure we are aligned on the best growth opportunities.

“As part of this process, we have made the painful decision to reduce approximately 1,900 positions from our team of 22,000 employees. The gaming leadership team and I are committed to guiding this process as thoughtfully as possible. Those directly affected by these cuts The folks at Impact all play a big role in the success of the Activision Blizzard, ZeniMax, and Xbox teams, and they should be proud of everything they’ve accomplished here. We’re grateful for the creativity they bring to our games, our players, and our colleagues , passion and dedication. We will provide full support to those affected during the transition, including severance pay under local employment laws. Those whose roles will be affected will be notified and we ask that you treat them with respect and in line with our values Treat coworkers who are leaving your job with compassion.

“Looking ahead, we will continue to invest in areas that grow our business and support our strategy of bringing more games to more players around the world. Although this is a difficult time for our team, I am as committed as ever to I believe in your ability to create and cultivate games, stories, and worlds that bring players together.

Microsoft completed its acquisition of Activision Blizzard King last October and laid off employees in its technology department in January 2023.