author: Zuzanna Domeradzka
Microsoft Lays Off Whopping 1900 People from Activision and Xbox. Even Head of Blizzard Included
Major layoffs reported at Microsoft. As many as 1900 people from Bethesda, ZeniMax, Activision Blizzard and Xbox will lose their jobs.
Microsoft is another company that's decided to lay off a large number of its employees. From a letter sent by Phil Spencer (as reported by The Verge), the CEO of the gaming department there, we learn that as many as 1,900 people from Activision Blizzard, Bethesda, ZeniMax and Xbox departments will lose jobs.
Restructuring in Microsoft
According to Spencer, Microsoft Gaming and Activision Blizzard jointly determined priorities and best growth opportunities, leading to layoffs. So, it's theoretically about adjusting the company's strategy and balancing the costs. Essentially, to secure its financial situation, a restructuring will be carried out in Microsoft and subsidiaries.
- The discussed layoffs are significant, 1,900 people constitute 8% of all the company's employees. In the letter, Phil Spencer detailed that the teams have total of 22,000 employees -- this includes all the teams like Xbox Game Studios, ZeniMax Media (which itself includes Bethesda) and Activision Blizzard.
- In the letter, it was also noted that Microsoft will provide full support to the laid-off individuals -- according to the regulations, they will receive severance. In addition, these employees were thanked for their passion and dedication, but we can assume words are off little solace in this situation.
- Finally, Spencer mentioned that the company's strategy of diversified investment and providing more games to a growing group of players will be continued.
It is worth noting that the restructuring takes place 3 months after the finalization of the acquisition of the Activision Blizzard holding by Microsoft at the handsome price of 69 billion USD. The first changes in management after this large acquisition took place at the end of October last year.
Changes in Blizzard
Interestingly, Mike Ybarra, the head of Blizzard Entertainment, decided to leave of his own accord. He informed that yesterday, he finished his adventure with the company.
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. Having already spent 20+ years at Microsoft and with the acquisition of Activision Blizzard behind us, itâ??s time for me to (once again) become Blizzardâ??s biggest fan from the outside.
The new president of Blizzard is to be elected next week (quoting The Verge). Another person to have left the company that gave us Diablo, was Allen Adham, who had worked on the original installment of that iconic series, as well as World of Warcraft.
It seemed that after last year, which set an infamous record in terms of the number of people who lost jobs in the gaming industry (c. 10,000 in total), things would settle now.
Barely a month into new year, though, 5,900 people from the industry have already lost jobs (also taking into account the restructuring of Microsoft). This is more than half of last year's result (sic). Unfortunately, the experts' predictions are most likely coming true.
AAA title binned
Finally, it is worth adding that due to the restructuring at Microsoft, the survival game created by Blizzard was canceled. We didn't know much more about it than that it was supposed to be a AAA production set in a completely new universe.