Microsoft Announces Workforce Reduction in Activision Blizzard and Xbox
Microsoft has announced that it will be reducing its workforce in Activision Blizzard and Xbox, with 1,900 employees being laid off. This round of layoffs is part of broader cuts in the technology sector that have been taking place in 2024. Approximately 8% of Microsoft Gaming division will be affected by these cuts, with the majority of the layoffs occurring in Activision Blizzard.
President of Blizzard and Chief Project Officer Also Departing
President of Blizzard, Mike Ybarra, and Chief Project Officer, Allen Adham, are also leaving the company as a result of these layoffs. Additionally, Microsoft has announced the cancellation of an earlier announced survival game from Blizzard.
Workforce reduction stems from Microsoft’s investment in Activision Blizzard
The decision to reduce the workforce is a result of Microsoft’s investment of $69 billion in Activision Blizzard a few months prior. The aim of this acquisition is to strengthen Microsoft’s position in the gaming market, enable more effective competition with industry leader Sony, and gain access to popular titles such as “Call of Duty”.
CWA statement expresses concern and commitment to supporting employees
A statement by the Communications Workers of America (CWA) to Reuters expressed concern over Microsoft’s decision to lay off 1,900 video game-related employees. The CWA emphasized that this decision underscores the vulnerability of livelihoods in successful and highly profitable industries when workers have no voice at work. The organization has committed to continuously support Microsoft employees and the entire video game industry in their pursuit of establishing a union voice in their workplaces.
Workforce reduction is part of a broader trend in the tech sector
The reduction in workforce at Microsoft is part of an overall trend in the technology sector, where various companies such as Alphabet, Amazon.com, and eBay have also recently undergone significant workforce reductions. These layoffs are aimed at reducing costs and increasing profitability.
Tech sector observes significant job cuts
According to data from Layoffs.fyi, in January 2025 alone, layoffs affected over 21,000 employees in 76 technology companies. In 2024, the tech sector witnessed a total of 168,032 layoffs, surpassing other industries. Microsoft alone accounted for over 10,000 of these layoffs, according to a report by Challenger, Gray and Christmas.
Impact of investment in artificial intelligence technology
Although industry analysts predict fewer layoffs this year, they suggest that companies heavily investing in artificial intelligence technology may still engage in reductions to balance substantial expenses. The tech sector has particularly felt the impact of layoffs, which have become a common strategy for businesses.
Source of Information
The original source of information can be found on The Verge website [link to The Verge’s homepage].
The source of the article is from the blog maltemoney.com.br