Nearly 2,000 employees have said goodbye to their positions in the video game division

The year has not started well at all for many employees of different companies in the video game sector. In the few weeks since 2024, companies like Twitch or Riot Games have laid off hundreds of employees due to cuts and budget adjustments they have made internally. However, today there was a real bombshell at Microsoft when it announced a massive wave of layoffs.

Those from Redmond have communicated their decision to lay off 1,900 employees that are part of its video game division, also including part of Activision Blizzard, which we remember became part of its ranks after its purchase was made official in October of last year.

Phil Spencer himself, the head of Xbox, has sent a personal email to all those involved about this situation that has specifically affected 8% of the workforce of the 22,000 employees that are part of Microsoft’s video game division. In the email in question he indicates the following:

It’s been just over three months since the Activision, Blizzard, and King teams joined Microsoft. As we move into 2024, Microsoft Gaming and Activision Blizzard leadership is committed to aligning on a strategy and execution plan with a sustainable cost structure that will support the entirety of our growing business. Together, we’ve set priorities, identified areas of overlap, and made sure we’re all aligned on the best opportunities for growth.

As part of this process, we have made the painful decision to reduce the size of our gaming workforce by approximately 1,900 positions from our 22,000-person team. The Games Leadership Team and I are committed to navigating this process as carefully as possible. Everyone who is directly affected by these reductions has played an important role in the success of Activision Blizzard, ZeniMax, and the Xbox teams, and should be proud of everything they have accomplished here. We are grateful for all the creativity, passion and dedication you have brought to our games, our players and our partners. We will provide our full support to those affected during the transition, including compensation benefits established by local labor laws. Those whose roles are affected will be notified and we ask that you treat your departing colleagues with the respect and compassion that is consistent with our values.

Looking ahead, we will continue to invest in areas that will grow our business and support our strategy of bringing more games to more players around the world. While this is a difficult time for our team, I am more confident than ever in their ability to create and nurture the games, stories, and worlds that bring players together.

Among the nearly 2,000 people affected by this shocking decision are Mike Ybarra, as well as Allen Adham, the boss and founder and design director, respectively, of Blizzard Entertainment. Precisely on behalf of this group, the president of Activision, Rob Kostich, also wanted to comment on this setback that so many people have suffered:

Every time I meet with the group, my hope is to celebrate our victories together, share how we support our people, highlight the great work everyone does for our games and players, and talk about what we need to do together moving forward. drive our business forward.

However, as Phil’s message says, we have a difficult message to convey on the last point. Across AP, we have made organizational changes to reset and realign our resources for the future. As a result, some of our colleagues will leave the company. There are also changes in roles at Activision Blizzard, Blizzard, the people who support King and Microsoft Gaming. The leaders of those groups will address those changes.

We recognize that news like this is very difficult to process. This decision was not made lightly and in no way reflects the passion, commitment or support that our affected colleagues have provided to our business. Change is never easy, especially when it means saying goodbye to colleagues, teammates, and friends. Thank you to the incredibly talented team members who have made exceptional contributions to serving our players around the world.

We are supporting those affected during this transition with extended healthcare, severance packages, bonuses, job transition support and more for US employees, and for employees outside the US, support will be consistent with local rules and regulations. You will receive an invitation from your team leader to further discuss how we will work on these changes.