About 1,900 employees will be rendered jobless at Microsoft’s gaming division. This division’s success can be measured by the popularity of Activision Blizzard, ZeniMax and Xbox. Phil Spencer, CEO, Microsoft Gaming, has reportedly shared the painfulness of the process of having to let go valuable employees whose contribution has been significant.
The gaming division was about 22,000 strong before this latest round of layoffs was announced.
As reported by CNBC, Spencer had asked the impacted employees to take pride in all they had achieved. He also assured the employees of complete support from the company with severance pay, for smooth transition. He called on the employees to ensure that their impacted co-workers are given respect and emotional support in this difficult time.
The division now wishes to focus on areas that have potential for growth and strategies for coming up with more products for players worldwide.
It was just over three months ago, in October 2023 that Microsoft acquired Activision Blizzard in a $69 billion deal. This acquisition is said to be the biggest in the gaming space till date. The acquisition, it was hoped, would draw more players to Microsoft’s Xbox consoles and Game Pass subscription service.
Activision Blizzard’s offerings include the popular ‘Spyro’, ‘Diablo,’ ‘World of Warcraft’, ‘Call of Duty’ and so on. The company also owned King, of the famous ‘Candy Crush’ fame.
At the time, Microsoft already had a wide customer base for its ‘Halo’ and ‘Forza’ and the acquisition was to help expand Microsoft’s reach further.
Mike Ybarra, president, Blizzard Entertainment— which looks after the production and distribution of Blizzard’s games—has quit after being associated with the company for almost five years.
