Microsoft has reportedly decided to lay off around two thousand employees in its gaming sector, in companies it owns such as Activision Blizzard and Xbox, according to a new report by the tech website “The Verge”.
The laid-off employees make up around 8% of the total workforce in Microsoft’s gaming sector, which is estimated to be around 22,000 employees.
Regarding the recent layoff process that significantly affects Activision Blizzard employees, who were recently acquired by Microsoft for $69 billion after a lengthy 20-month dispute with regulatory authorities in the United States, the United Kingdom, and the European Union, Phil Spencer, the head of the gaming division at Microsoft, emphasized in an internal memo.
It is worth mentioning that Microsoft laid off around 10,000 employees during the past year in 2023, and it continues to carry out staff separations in the technical sector since the beginning of the current year.
In addition to layoffs, the current CEO of Blizzard Entertainment, Mike Ybarra, has decided to leave Microsoft after working there for twenty years. Also departing is Alan Adham, the senior vice president of game design at the company.
Significant changes in Microsoft’s gaming sector leadership have been witnessed in recent months. Prominent figures have departed, making way for new replacements. This includes the former CEO of Activision Blizzard resigning from his position and Sarah Bond being promoted to head of Xbox. Additionally, Matt Booty has assumed the role of head of game content and studios, which involves overseeing Bethesda, ZeniMax, and Activision Blizzard studios.