Microsoft has announced the layoff of 1,900 employees within its Activision Blizzard and Xbox divisions, marking another significant reduction in the tech sector as the trend of mass layoffs continues into 2024.
This decision accounts for approximately 8 percent of the company’s gaming division, with the majority of the job losses occurring at Activision Blizzard.
Additionally, Blizzard President Mike Ybarra and Chief Design Officer Allen Adham will be departing the company. Furthermore, Microsoft has confirmed the cancellation of a previously announced survival game developed by Blizzard.
I want to thank everyone who is impacted today for their meaningful contributions to their teams, to Blizzard, and to players’ lives. It’s an incredibly hard day and my energy and support will be focused on all those amazing individuals impacted – this is in no way a reflection…
— Mike Ybarra 🎄 (@Qwik) January 25, 2024
This announcement follows Microsoft’s recent completion of its $69 billion acquisition of Activision Blizzard, which strengthened its position in the gaming market, particularly against key competitor Sony, thanks to popular franchises such as Call of Duty.
The Communications Workers of America (CWA) responded to the layoffs, highlighting that even in successful companies within a lucrative industry, job security is not guaranteed without employees having a say in workplace matters. “We will continue to support workers at Microsoft and across the video game industry who want to have a union voice on the job,” the CWA stated.
In recent weeks, other major companies including Alphabet, Amazon.com, and eBay have also implemented layoffs, aiming to cut costs and increase profitability.
According to the tracking platform Layoffs.fyi, over 21,000 employees have been let go across 76 tech companies in January alone.
A report from Challenger, Gray and Christmas revealed that the tech industry lost 168,032 jobs throughout 2023, representing the highest number of layoffs among various sectors, including more than 10,000 from Microsoft.
Many analysts anticipate a decline in layoffs this year, suggesting that companies striving to advance in the AI sector may resort to workforce reductions to balance the escalating expenses associated with technological advancement.
Technology News was the first to break the news regarding these job cuts from Microsoft.
© Thomson Reuters 2024
