Microsoft is reducing its workforce by at least 1,900 employees, encompassing its recently acquired gaming company, Activision Blizzard, and the Xbox division. This decision will affect approximately 8% of the Microsoft gaming division, which currently employs around 22,000 people.
The CEO of Microsoft Gaming, Phil Spencer, communicated this decision in an internal memo, acknowledging the valuable contributions of the affected employees to the success of Activision Blizzard, ZeniMax, and Xbox teams.
As part of this restructuring, Activision Blizzard President Mike Ybarra has chosen to depart from the company. Ybarra expressed gratitude to the impacted individuals for their significant contributions and recognized the challenges associated with the decision. He assured them that their exceptional work remains appreciated.
Having spent over 20 years at Microsoft and witnessing the completion of the Activision Blizzard acquisition, Ybarra announced his transition to becoming Blizzard’s supporter from an external perspective. He reiterated his support for the affected individuals during this transition.
Microsoft’s acquisition of Activision Blizzard, valued at $68.7 billion and finalized in the previous October after regulatory hurdles in the UK and the US, triggered significant organizational changes within the Xbox gaming and marketing leadership. These layoffs and reorganizations signify Microsoft’s efforts to streamline and adapt its workforce post-acquisition. The company acknowledges the complexity of the situation and values the dedication of those impacted during this period of transition.
About Microsoft Corporation:
Microsoft Corporation is a multinational technology company headquartered in Redmond, Washington, USA. Founded by Bill Gates and Paul Allen in 1975, it is renowned for developing, manufacturing, licensing, supporting, and selling computer software, consumer electronics, personal computers, and related services. Microsoft’s flagship products include the Windows operating systems, Microsoft Office suite, Azure cloud computing platform, and Xbox gaming consoles. The company is a leader in various technology sectors, including software development, cloud computing, artificial intelligence, and productivity software.
About Activision Blizzard:
Activision Blizzard, Inc. is a prominent American video game company formed in 2008 through the merger of Activision and Vivendi Games. It is headquartered in Santa Monica, California. The company is renowned for developing and publishing popular video game franchises across various genres, platforms, and demographics.
Some of its most notable franchises include:
- Call of Duty: A highly successful first-person shooter series known for its immersive multiplayer experience and gripping single-player campaigns.
- World of Warcraft: A massively multiplayer online role-playing game (MMORPG) set in the Warcraft universe, which has garnered a massive and dedicated player base over the years.
- Diablo: A dark fantasy action role-playing game series known for its deep lore, challenging gameplay, and addictive loot system.
- Overwatch: A team-based multiplayer first-person shooter game renowned for its diverse cast of characters and emphasis on teamwork and strategy.
- StarCraft: A real-time strategy game series set in a futuristic science fiction universe, known for its competitive multiplayer scene and compelling single-player campaigns.
Activision Blizzard has also expanded its portfolio through acquisitions, including King Digital Entertainment, the creator of the highly successful mobile game Candy Crush Saga.
As of recent years, the company has faced various challenges and controversies, including concerns regarding workplace culture and labor practices, which have prompted internal and external scrutiny and led to efforts to address these issues.
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