Mass Layoffs: Microsoft to fire 1,900 employees after activision gaming buyout
Microsoft Mass Layoffs: Microsoft is laying off 1,900 people, or 8% of its gaming division, as it consolidates its massive acquisition of "Call of Duty" maker Activision Blizzard.
In a memo to employees reported by US media The Verge on Thursday, Phil Spencer, the head of Microsoft's gaming division, stated that the cuts were made after the two companies found synergies.
Spencer informed employees that Microsoft and Activision were committed to finding a "sustainable cost structure" to expand the gaming business, which employs 22,000 people and includes the Xbox division.
"Together, we've set priorities, identified areas of overlap, and ensured that we're all aligned on the best opportunities for growth," he said.
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Along with the layoffs, Blizzard president Mike Ybarra announced his departure.
"It's an incredibly hard day and my energy and support will be focused on all those amazing individuals impacted," Ybarra said on X.
Microsoft announced its blockbuster acquisition in January 2022, making it the world's third-largest gaming company by revenue.
The buyout was closely scrutinised by regulators, including in the United States, but the transaction eventually prevailed.
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