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In the wake of Microsoft’s monumental $69 billion acquisition of Activision Blizzard, the tech giant has initiated a significant workforce reduction, impacting around 1,900 employees within its gaming division. The move, which accounts for nearly 9% of the gaming workforce, is a common occurrence following large-scale mergers.
Microsoft’s acquisition of Activision Blizzard, which also includes King, marked the company’s most substantial deal to date, surpassing the size of its 2016 acquisition of LinkedIn. The teams from Activision, Blizzard, and King officially joined Microsoft slightly over three months ago. As the integration progresses into 2024, the leadership of Microsoft Gaming and Activision Blizzard aims to align on a strategic vision and execution plan with a sustainable cost structure.
In a statement, Microsoft’s Gaming Leadership Team expressed commitment to navigating this process thoughtfully, acknowledging the painful decision to reduce the gaming workforce. The affected roles amount to approximately 1,900 out of the 22,000 individuals comprising the gaming team. Microsoft emphasized its gratitude for the contributions of the affected employees, recognizing their essential roles in the success of Activision Blizzard, ZeniMax, and the Xbox teams.
The company pledged full support for the impacted employees during the transition, providing severance benefits in accordance with local employment laws. The affected individuals will receive notifications, and Microsoft encouraged colleagues to treat their departing peers with respect and compassion, aligning with the company’s values.
While this marks a challenging moment for the gaming team, Microsoft remains confident in its ability to invest in areas that foster business growth and support its strategy of expanding gaming accessibility globally. The company emphasized its ongoing commitment to creating and nurturing games, stories, and worlds that bring players together.
The layoffs follow a trend seen in the aftermath of major acquisitions, with companies often reassessing their workforce and operational structure to streamline operations and enhance efficiency.