Microsoft, whose market value recently exceeded $3 trillion for the first time, announced the decision to lay off 1,900 employees from its video game division, Microsoft Gaming.
A new wave of layoffs at Microsoft (last January, the company laid off 10,000 workers) became known through a message to employees from Microsoft Gaming CEO Phil Spencer, which we have already read mass media.
The cuts will amount to 8% of Microsoft Gaming’s total workforce of approximately 22,000 employees. The layoffs primarily affect Activision Blizzard, which Microsoft bought for $68.7 billion, but also Xbox and ZeniMax (Bethesda).
At the same time, it was announced that President Mike Ybarra and co-founder Allen Adham would be leaving Blizzard Entertainment, and the unnamed survival simulator in the new universe was canceled.
Spencer said layoffs have become a painful necessity as Microsoft Gaming and Activision Blizzard look to establish a sustainable cost structure “will support our growing business”.
Spencer promised to provide full support to employees affected by the cuts, including “Severance pay in accordance with local labor laws”.
Microsoft “We will continue to invest in areas that support the growth of our business and align with our strategy to offer more games to more players around the world.”.