Microsoft slashes 1,900 jobs across Xbox and Activision Blizzard

We're not even one month into 2024 and it's already been another brutal year for workers in the video game industry. Microsoft is the latest company to announce a major round of layoffs in its gaming division as it's cutting around 1,900 workers from its Xbox, Activision Blizzard and ZeniMax (aka Bethesda) teams. That brings the total number of video game layoffs this year to around 6,000 already. There were around 9,000 layoffs in the industry in all of 2023, according to some estimates.

«As we move forward in 2024, the leadership of Microsoft Gaming and Activision Blizzard is committed to aligning on a strategy and an execution plan with a sustainable cost structure that will support the whole of our growing business. Together, we’ve set priorities, identified areas of overlap, and ensured that we’re all aligned on the best opportunities for growth,» Microsoft Gaming CEO Phil Spencer told employees in a memo obtained by The Verge. «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 majority of the cuts are said to be within Activision Blizzard, three months after Microsoft finally closed its $68.9 billion takeover over the publisher. Some positions on the Xbox and ZeniMax teams will be affected too.

«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,» Spencer reportedly wrote. «We are grateful for all of the creativity, passion and dedication they have brought to our games, our players and our colleagues. We will provide our full support to those who are impacted during the transition, including severance benefits informed by local employment laws.»

Spencer added that Microsoft will «continue to invest in areas that will grow our business and support our strategy of bringing