Months after closing the $69 billion takeover of Activision Blizzard and becoming the second ever $3 trillion company, Microsoft is laying off 1,900 staff within its gaming business.

The cuts, which amount to roughly eight per cent of the Microsoft Gaming division, is primarily impacting Activision Blizzard, with some staff at Xbox and Bethesda parent company ZeniMax.

In a memo to staff, head of Xbox Gaming Phil Spencer said: “As we move forward in 2024, the leadership of Microsoft Gaming and Activision Blizzard is committed to aligning on a strategy and an execution plan with a sustainable cost structure that will support the whole of our growing business. Together, we’ve set priorities, identified areas of overlap, and ensured that we’re all aligned on the best opportunities for growth.

“The people who are directly impacted by these reductions have all played an important part in the success of Activision Blizzard, ZeniMax and the Xbox teams, and they should be proud of everything they’ve accomplished here. We are grateful for all of the creativity, passion and dedication they have brought to our games, our players and our colleagues. We will provide our full support to those who are impacted during the transition, including severance benefits informed by local employment laws.”

Microsoft recently announced a leadership shakeup in the gaming business, with Sarah Bond promoted to Xbox president and Matt Booty promoted to president of game content and studios.

In a separate memo, Booty confirmed that Blizzard president Mike Ybarra and chief design officer Allen Adham have also left the business. Microsoft plans to name a new Blizzard president next week, The Verge reports.

He added: “No matter the reason behind these decisions, they are never made lightly. Changes like these affect the lives of colleagues and friends, and we are all grateful for their meaningful contributions to Blizzard and its world class lineup of games.”

Much like the tech industry, a number of major game companies have announced mass layoffs. There were around 10,000 layoffs in the gaming industry in 2023, and January has already seen 5,600 confirmed job cuts.

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