Microsoft plans to fire some 1,900 employees in its gaming sector. Alongside the layoffs, Blizzard president Mike Ybarra said he was leaving the firm.
The goal of the layoffs, according to Microsoft Gaming CEO Phil Spencer's message, was to reduce “areas of overlap.”
“The people who are directly impacted by these reductions have all played an important part in the success of Activision Blizzard, ZeniMax and the Xbox teams, and they should be proud of everything they’ve accomplished here,” Spencer wrote.
The decision was made less than three months after Activision Blizzard, the company most known for the computer games Call of Duty, Crash Bandicoot, World of Warcraft, and Spyro, was acquired by Microsoft. Xbox is owned by Microsoft as well.
Spencer said that the company plans to “invest in areas that will grow our business and support our strategy of bringing more games to more players around the world.”
“Although this is a difficult moment for our team, I’m as confident as ever in your ability to create and nurture the games, stories and worlds that bring players together,” he said.
Ybarra, who was appointed president of Blizzard in 2022, thanked everyone in a post on X.
“who is impacted today for their meaningful contributions to their teams, to Blizzard, and to players’ lives.”
Ybarra promised to assist anyone impacted by the cuts, calling it a “very difficult day,” although he did not disclose the number of workers let go. He also stated that “this is in no way a reflection on your amazing work.”
“To the Blizzard community: I also want to let you all know today is my last day at Blizzard. Leading Blizzard through an incredible time and being part of the team, shaping it for the future ahead, was an absolute honor,” Ybarra wrote. “Having already spent 20+ years at Microsoft and with the acquisition of Activision Blizzard behind us, it’s time for me to (once again) become Blizzard’s biggest fan from the outside.”
Requests for comments were not immediately answered by Activision Blizzard. Microsoft's head of game content and studios, Matt Booty, sent an internal message that was confirmed by an official from the company, however the representative did not comment.
“This is a difficult process, but it is one that will best enable Blizzard and Xbox to deliver ambitious games for our players on more platforms and in more places than ever before,” Booty wrote.
In addition to expressing his gratitude to Ybarra, he announced the departure of Allen Adham, chief design officer of Blizzard. Adham was a co-founder of Blizzard.
Next week, Blizzard will make its new president public, according to Booty.
The gaming industry had a terrible year, with at least 6,500 individuals in the sector losing their employment. This year, there will be layoffs. Unofficial trackers claim there was a much greater count.
This year, layoffs have persisted in the gaming industry. According to Kotaku, a website that reviews video games, publishers, developers, and other businesses involved in the industry, 5,800 jobs were eliminated this month. 530 employees were let go by Riot Games, the company behind the League of Legends and Valorant computer games, on Monday.
The video game streaming company Twitch, which is owned by Amazon, also announced earlier this month that it will lay off roughly 500 workers. Popular messaging app Discord, which lets users talk with other players in video games, has revealed that it is firing 170 workers, or 17% of its workforce, this month.
