Microsoft Takes Steps to Streamline Operations in Gaming Division
In a recent move, Microsoft has announced a reduction in workforce that will affect approximately 1,900 employees across Activision Blizzard and Xbox. While the majority of the layoffs will be concentrated within Activision Blizzard, it is expected that some employees from Xbox and ZeniMax will also be affected by these changes. This decision will result in around 8% of the total employment within Microsoft Gaming being affected, which currently stands at approximately 22,000 employees. The layoffs were confirmed through an internal memo obtained by The Verge, authored by Microsoft Gaming CEO Phil Spencer.
Phil Spencer emphasized the commitment of Microsoft Gaming and Activision Blizzard in developing a strategy and action plan for 2024. The aim is to create a sustainable cost structure that supports the growth of the entire business. The internal memo expressed the difficult decision to reduce the number of gaming-related positions by approximately 1,900, while also providing support for affected employees through shared benefits.
Mike Ybarra, President of Blizzard, has decided to leave the company, marking the end of his over 20-year career at Microsoft. Matt Booty, Head of Content and Gaming Studios at Microsoft, conveyed this news through an internal memo and also announced the departure of Allen Adham, the Lead Designer at Blizzard.
A new President of Blizzard will be appointed in the coming week. Booty also revealed that the previously announced Blizzard survival game has been canceled as part of the restructuring, with resources being redirected towards promising new projects in early stages of development.
Microsoft’s workforce reductions follow similar layoffs announced by Riot Games, Google, Discord, Twitch, Unity, eBay, among others, this month.
These changes come after Microsoft’s acquisition of Activision Blizzard for $68.7 billion in October, a transaction that concluded after 20 months of regulatory challenges in the UK and the US. Recent advancements in the Xbox leadership, including Sarah Bond’s promotion to Head of Xbox, demonstrate Microsoft’s ongoing efforts to streamline and optimize its gaming division.
Matt Booty’s internal memo provided a detailed description of the implemented changes and expressed gratitude to departing employees for their contributions. The memo also highlighted Microsoft’s commitment to investing in areas that foster business growth and deliver quality gaming experiences to a global audience.
FAQ
1. Who is Microsoft Gaming?
Microsoft Gaming is a division of Microsoft Corporation that focuses on computer and console gaming.
2. What were the decisions regarding the workforce reduction?
Microsoft has decided to reduce its workforce, affecting approximately 1,900 employees across Activision Blizzard and Xbox. While most of the layoffs are within Activision Blizzard, some employees from Xbox and ZeniMax will also be affected.
3. What is the percentage calculation of layoffs relative to total employment in Microsoft Gaming?
The decision to reduce the workforce represents around 8% of the overall employment within Microsoft Gaming, which amounts to approximately 22,000 employees.
4. What is the commitment of the Microsoft Gaming and Activision Blizzard leadership?
The Microsoft Gaming and Activision Blizzard leadership are working together to develop a strategy and action plan for 2024, aiming to create a sustainable cost structure that supports the growth of the entire business.
5. Who has left the Blizzard company?
Mike Ybarra, President of Blizzard, has decided to leave Microsoft, bringing an end to his over 20-year career at the company.
6. Who will be appointed as the new President of Blizzard?
The new President of Blizzard will be appointed in the coming week.
7. Which companies have made similar layoffs during the same month?
Similar layoffs have been announced by companies such as Riot Games, Google, Discord, Twitch, Unity, eBay, and others during the same month.
8. How are these changes related to Microsoft’s acquisition of Activision Blizzard?
Microsoft’s workforce reductions have taken place following their acquisition of Activision Blizzard for $68.7 billion in October.
9. What are Microsoft’s goals in the gaming industry?
Microsoft invests in areas that foster business growth and deliver quality gaming experiences to a global audience.
Definitions of Key Terms:
1. Activision Blizzard – An American company specializing in the production and publishing of video games, known for popular titles such as World of Warcraft, Call of Duty, and Overwatch.
2. Xbox – A brand of video game consoles produced by Microsoft Corporation.
3. ZeniMax – An American company involved in the production and distribution of video games. It was acquired by Microsoft in 2020.
Suggested Related Links:
– Microsoft
– Activision Blizzard
The source of the article is from the blog maestropasta.cz