Microsoft is implementing a workforce reduction, affecting 1,900 employees across Activision Blizzard, Xbox and ZeniMax this week. The layoffs predominantly target positions within Activision Blizzard, but also extend to some personnel in Xbox and Zenimax.
January 2024's Game Industry Layoffs Exceed 50% of 2023 Total
Job losses in the games industry announced in January have already surpassed half of the total layoffs in 2023. According to Video Games Layoffs, an estimated 10,500 industry workers lost their jobs in 2023. As of now, the estimate for 2024 stands at 3,770, but Microsoft's recent announcement of 1,900 layoffs means the 2024 total will be at least 5,670.
The layoffs constitute 54% of 2023's total, with Microsoft cutting around 8% of its gaming division and Riot Games laying off around 530 staff. Unity also contributed to the high total with a plan to cut 25%of its workforce earlier this month.
Amidst the recent Microsoft layoffs at Blizzard, President Mike Ybarra, with over 20 years at Microsoft, has decided to leave post-acquisition. “As many of you know, Mike previously spent more than 20 years at Microsoft. Now that he has seen the acquisition through as Blizzard’s president, he has decided to leave the company,” stated Microsoft’s game content and studios president, Matt Booty, in an internal memo.
A new Blizzard president will be named soon. Co-founder Allen Adham is also departing, but his impact on the game design will endure. As part of these changes, the announced survival game is canceled, with resources redirected to promising new projects in Blizzard's early development.
Tech Industry Giants Face Layoffs, Microsoft Completes Activision Blizzard Acquisition
In January, several tech companies, including Riot Games, Google, Discord, Twitch, Unity and eBay, announced layoffs follows its $68.7 billion acquisition of Activation Blizzard in October, marking significant industry changes.
Former Activision Blizzard CEO Bobby Kotick's departure led to organizational shifts, with Matt Booty overseeing the gaming portfolio.
The layoffs coincide with Xbox leadership changes, with Sarah Bond promoted to Xbox president and Booty overseeing Bethesda, ZeniMax and Activision Blizzard. Microsoft, which last announced major layoffs a year ago, will report its fiscal Q2 2024 earnings next week, incorporating the impact of the Activision Blizzard acquisition for the first time.