Microsoft Announces Job Reduction in Gaming Division
Microsoft has recently announced plans to reduce its workforce within the gaming division, specifically at Activision Blizzard, which it acquired for $69 billion last year. This decision is expected to affect approximately 8% of Microsoft Corp’s gaming division employees.
In an email to employees, Phil Spencer, the Head of Microsoft’s gaming division, mentioned that around 8% of the division’s 22,000 employees would be affected by the reduction. Other video game companies, such as Riot Games, have also downsized their teams.
The email from Spencer emphasized the establishment of priorities, identification of overlapping areas, and the commitment to finding the best growth opportunities for the company.
Blizzard Entertainment, too, is implementing significant changes in response to the job reduction. They have cancelled the production of a game code-named “Odyssey” and parted ways with their President, Mike Ybarra, and Director of Project Management, Allen Adham, who is a co-founder of the company.
The decisions come just three months after Microsoft finalized the acquisition of Activision Blizzard. As revealed in an email sent by Activision Publishing CEO Rob Kostich to the employees, the downsizing is part of the restructuring process aimed at redirecting resources towards the future.
This year has seen job reductions in over 60 other technology companies, including Amazon and Alphabet (Google’s parent company), as reported by Layoffs.fyi, an online source monitoring employment reductions in the tech industry.
In the upcoming week, Microsoft is set to announce its quarterly results, which may provide additional insights into this decision.
FAQ:
1. Which companies will be affected by the job reduction in Microsoft’s gaming division?
The job reduction will mostly impact Activision Blizzard, which Microsoft acquired for $69 billion last year.
2. How many employees will be affected by the job reduction?
Approximately 8% of the employees, totaling around 1,760 individuals, will be affected by the job reduction in Microsoft’s gaming division.
3. Which other gaming companies have also implemented job reductions?
Other companies, such as Riot Games, have also downsized their workforce.
4. What changes will be made at Blizzard Entertainment?
Blizzard Entertainment has cancelled the production of a game code-named “Odyssey” and has seen the departure of its President, Mike Ybarra, and Director of Project Management, Allen Adham, who is a co-founder of the company.
5. Why is Microsoft making the decision to reduce jobs after acquiring Activision Blizzard?
The job reduction is a part of the restructuring process and resource reallocation for future endeavors.
Terminology and Glossary:
1. Microsoft Corp. – An American technology company involved in software production and electronic device manufacturing.
2. Activision Blizzard – An American company specializing in the production and publishing of video games, which was acquired by Microsoft for $69 billion.
3. Job Reduction – The process of decreasing the number of employees within a company.
4. Riot Games – An American video game company known for developing “League of Legends” and other popular games.
Recommended Related Links:
– Microsoft
– Activision Blizzard
– Riot Games
The source of the article is from the blog japan-pc.jp