New Title: “Microsoft Gaming Announces Restructuring Following Acquisition of Activision Blizzard”
Microsoft Gaming, a division of Microsoft responsible for developing and publishing games, has confirmed that approximately 1,900 employees will be laid off. The restructuring will affect the Xbox, Zenimax, and Activision Blizzard segments, which amounts to approximately 8% of the total workforce in Microsoft Gaming.
These cuts come three months after Microsoft’s acquisition of Activision Blizzard. Some of the layoffs in Microsoft will involve areas of overlap between Microsoft Gaming and Activision Blizzard. Such layoffs are common following acquisitions. However, the announced layoffs by Microsoft encompass a significant 8% of the overall Microsoft Gaming workforce, indicating that the layoffs will also affect other areas.
CEO of Microsoft Gaming, Phil Spencer, released a memo obtained and published by The Verge. In the memo, he stated:
“It has been over three months since the integration of the Activision, Blizzard, and King teams with Microsoft. As we move forward into 2024, the leadership of Microsoft Gaming and Activision Blizzard are committed to establishing a strategy and execution plan with the appropriate cost structure that will support our growing business. Together, we have set priorities, identified areas of overlap, and ensured that we are aligned on the best growth opportunities.
As part of this process, we have made the difficult decision to reduce our workforce in the gaming division by around 1,900 positions out of our 22,000-strong team. The gaming leadership team and I are committed to conducting this process in the most thoughtful manner possible. The individuals directly impacted by these reductions have played an important role in the success of Activision Blizzard, ZeniMax, and Xbox teams and should be proud of everything they have accomplished here. We are grateful for all the creativity, passion, and dedication they have brought to our games, players, and colleagues. We will provide full support to those who are directly impacted during this process, including benefits as provided by local labor laws. Those who will be laid off will be informed, and we ask that you treat your departing colleagues with respect and empathy, in line with our values.
Looking ahead, we will continue to invest in areas that grow our business and support our strategy to reach a larger number of players worldwide. While this is a challenging moment for our team, I am confident that you still possess the ability to create and nurture games, stories, and worlds that bring players together.
Phil”
Former Blizzard President, Mike Ybarra, has announced that he is leaving the company. According to reports, Microsoft plans to name a new president for Blizzard in the coming week.
In a statement on Twitter, Ybarra mentioned:
“I have spent over 20 years at Microsoft, and with the acquisition of Activision Blizzard, it’s time to become (once again) the biggest fan of Blizzard from the outside.
I want to thank everyone who is feeling the effects of these layoffs today for their significant contributions to their teams, Blizzard, and the lives of gamers. It’s an incredibly tough day, and my support and energy will be directed towards all those amazing individuals affected by these decisions – this is in no way a reflection…”
At this time, it is unclear how the layoffs in Microsoft will impact Microsoft Gaming as a whole. Microsoft Gaming is a large enterprise that controls a vast number of game studios. Microsoft appears to be approaching these layoffs strategically, hoping to minimize the impact on ongoing projects. Nevertheless, the announcement of these layoffs will undoubtedly affect the morale of the entire Microsoft Gaming team. It is something that will have an impact on many Microsoft Gaming projects.
FAQ Section addressing key topics and information presented in the article:
1. Which companies will be affected by the layoffs in Microsoft Gaming?
The layoffs will affect the Xbox, Zenimax, and Activision Blizzard segments, which amounts to approximately 8% of the total workforce in Microsoft Gaming.
2. What is the reason for these layoffs?
Some of the layoffs in Microsoft will involve areas of overlap between Microsoft Gaming and Activision Blizzard, which is typical after acquisitions. However, the announced layoffs by Microsoft encompass a significant 8% of the overall Microsoft Gaming workforce, indicating that the layoffs will also affect other areas.
3. What is the CEO of Microsoft Gaming’s stance on these layoffs?
CEO of Microsoft Gaming, Phil Spencer, is committed to conducting the layoff process thoughtfully and providing full support for those directly affected by these changes. He also acknowledges that the individuals being laid off played important roles in the success of various Microsoft Gaming-related companies.
4. What about Mike Ybarra leaving the company?
Former Blizzard president, Mike Ybarra, has announced his departure from the company. Microsoft plans to appoint a new president for Blizzard in the coming week.
5. What are the further plans for Microsoft Gaming?
Despite the layoffs being a difficult moment for the team, Microsoft Gaming will continue to invest in areas that grow the business and support the strategy of reaching a larger number of players worldwide.
Definitions of key terms or jargon used in the article:
– Microsoft Gaming: A segment of Microsoft responsible for developing and publishing games. It includes brands such as Xbox, Zenimax, and Activision Blizzard.
– Xbox: Microsoft’s console platform and gaming services.
– Zenimax: A game development and publishing company that was acquired by Microsoft in 2021. It is part of Microsoft Gaming.
– Activision Blizzard: A large video game company involved in game development and publishing, which was acquired by Microsoft in 2022. It is part of Microsoft Gaming.
Suggested related links to the main domain:
– Microsoft Homepage
– Official Xbox Website
The source of the article is from the blog myshopsguide.com