Microsoft has initiated layoffs, impacting 1,900 employees across Activision Blizzard and Xbox this week. This move is part of broader technology sector layoffs continuing into 2024.
This reduction affects approximately 8% of Microsoft’s Gaming division, primarily at Activision Blizzard. Blizzard President Mike Ybarra and Chief Design Officer Allen Adham will also depart. Blizzard’s planned survival game has been canceled.
These developments follow Microsoft’s $69 billion acquisition of Activision Blizzard, enhancing its video gaming market presence. This includes popular titles like “Call of Duty”, positioning Microsoft against Sony.
The Communications Workers of America (CWA) responded, highlighting the vulnerability of workers’ livelihoods in profitable industries without union representation. CWA pledges continued support for unionization in the video game industry.
Tech giants, including Alphabet, Amazon.com, and eBay, recently reduced their workforce. January saw over 21,000 tech sector layoffs per Layoff. FYI.
According to a Challenger, Gray and Christmas report, the tech industry led 2023’s layoffs with 168,032 job cuts. Microsoft’s share exceeded 10,000.
Analysts predict a slowdown in layoffs this year, especially among AI-focused companies balancing investment costs.
The Verge initially reported Microsoft’s latest job reduction.