Microsoft cuts 1,900 staffers from its games division

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Tech firm Microsoft is laying off 1,900 employees from its video games division.

As reported by IGN, per sources familiar with the matter, the memo was delivered by Xbox boss Phil Spencer.

Spencer said in the memo, "As we move forward in 2024, the leadership of Microsoft Gaming and Activision Blizzard is committed to aligning on a strategy and an execution plan with a sustainable cost structure that will support the whole of our growing business. Together, we've set priorities, identified areas of overlap, and ensured that we're all aligned on the best opportunities for growth.

"As part of this process, we have made the painful decision to reduce the size of our gaming workforce by approximately 1,900 roles out of the 22,000 people on our team."

He added, "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."

Alongside the nearly 2,000 redundancies at the tech giant, development was also canceled for Blizzard's previously announced survival title. As reported by The Verge, in an internal message to staff, Matt Booty, president of game content studios, said the company will be "shifting some of the people working on it to one of several promising new projects Blizzard has in the early stages of development."

Additionally, Booty announced the departures of Allen Adham, Blizzard's Chief Design Officer, and Mike Ybarra, Blizzard Entertainment president.

Ybarra officially announced his exit on social media. He leaves the developer after four years, having served as president for the last two years.

Ybarra said in part, "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 on your amazing work. "

Regarding layoffs, a year prior, Microsoft laid off 10,000 employees. Among the affected were staff at Bethesda Game Studios and 343 Industries.

News of layoffs at Microsoft comes three months after Activision Blizzard officially became a part of the tech firm. Regulatory hurdles in the UK, EU, and US held up the for $68.7 billion acquisition deal.

Microsoft is set to report its second quarter earnings next week. During the first quarter, it reported net income of $22.3 billion, up 27% year-over-year.