Microsoft to cut 1,900 jobs in gaming division: report

Microsoft is reportedly planning to reduce its workforce by approximately 1,900 employees across Activision Blizzard and Xbox this week, according to The Verge's report.

This decision reflects the continued repercussions of last year's widespread tech layoffs extending into 2024.

The job cuts, constituting around 8% of the total Microsoft Gaming division, are expected to predominantly affect Activision Blizzard, as indicated in an internal memo from Phil Spencer, the head of Microsoft’s gaming division.

Microsoft has not officially responded to Reuters' request for comment on this matter at the time of reporting.

In addition to the staff reduction, Blizzard President Mike Ybarra and Chief Design Officer Allen Adham are also leaving the company. Moreover, a previously announced survival game by Blizzard has been canceled, as per The Verge’s report.

This development follows Microsoft's $69 billion acquisition of Activision Blizzard a few months ago, strategically aimed at strengthening its position in the highly competitive video gaming market. The acquisition sought to elevate Microsoft’s standing with popular titles such as "Call of Duty," positioning it to better compete with industry leader Sony.

These job cuts at Microsoft align with a broader trend in the tech industry. In recent weeks, major companies like Alphabet, Amazon.com, and eBay have implemented significant staff layoffs as part of cost-cutting measures to enhance profitability.

As of January, more than 21,000 workers have been laid off across 76 tech firms, according to the tracking website Layoffs.

The tech sector witnessed 168,032 job cuts in 2023, marking it as the industry with the highest number of layoffs, according to a report by Challenger, Grey, and Christmas earlier this month. Microsoft alone accounted for over 10,000 of those cuts.