In a message addressed to the staff and obtained by IGN, Phil Spencer, head of Microsoft Gaming, announced that Microsoft will offer full support, including severance benefits in accordance with local employment laws, to those affected by the upcoming layoffs resulting from the Microsoft-Activision Blizzard merger.
Spencer explained that the decision was reached after the leadership teams of both companies collaborated to set priorities, identify areas of overlap, and align on growth opportunities.
In addition to the layoff news, Blizzard president Mike Ybarra and chief design officer Allen Adham have confirmed their departure from the company, according to reports from The Verge.
Blizzard’s previously announced survival game, led by former Ubisoft Far Cry head Dan Hay, has been canceled as part of the recent changes following Microsoft’s $69 billion acquisition of Activision Blizzard.
Phil Spencer, head of Microsoft Gaming, conveyed in an email to staff that the leadership of Microsoft Gaming and Activision Blizzard is dedicated to developing a strategy and execution plan with a sustainable cost structure to support the expanding business. The teams have collaborated to set priorities, identify areas of overlap, and ensure alignment on optimal growth opportunities.
People at the impacted companies tell me that as of right now, they don't know who are losing their jobs. Bloomberg story will be updated here as we learn more: https://t.co/EFrb5W1afY
— Jason Schreier (@jasonschreier) January 25, 2024
The recent announcement of layoffs at Microsoft comes merely a year after the company’s previous round of job cuts that impacted its gaming teams. In January 2023, Microsoft confirmed its intention to lay off about 10,000 employees, constituting approximately 4.5% of its extensive 220,000-person workforce.
The trend of job losses in the gaming industry, which witnessed an estimated 9,000 layoffs in 2023, seems to persist into the current year without signs of slowing down.
“As part of this process, we have made the painful decision to reduce the size of our gaming workforce by approximately 1900 roles out of the 22,000 people on our team. The Gaming Leadership Team and I are committed to navigating this process as thoughtfully as possible.
“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.
We are grateful for all of the creativity, passion, and dedication they have brought to our games, our players, and our colleagues.
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
“We will provide our full support to those who are impacted during the transition, including severance benefits informed by local employment laws.
Those whose roles will be impacted will be notified, and we ask that you please treat your departing colleagues with the respect and compassion that is consistent with our values.
“Looking ahead, we’ll continue to invest in areas that will grow our business and support our strategy of bringing more games to more players around the world.
Although this is a difficult moment for our team, I’m as confident as ever in your ability to create and nurture the games, stories and worlds that bring players together.”
The impact of layoffs in the gaming industry is evident, as revealed by a GDC survey of 3,000 developers. The survey indicates that approximately one-third of developers experienced the effects of layoffs at their workplaces over a 12-month period.
Among the respondents, 7% reported being personally laid off, 17% noted layoffs among colleagues in their department, and 11% observed layoffs in other teams or departments within their organizations.
