Microsoft announced it is cutting 1,900 roles within its gaming division, marking the latest round of job layoffs in the tech industry.
Amazon, Google and Google’s parent company, Alphabet, have already laid off employees this year, as have banking titan Citigroup and the Los Angeles Times.
Microsoft’s cuts will primarily impact roles in its Activision Blizzard team, according to an internal email obtained by The Verge. Some Xbox and ZeniMax employees will also be laid off.
LAYOFFS SURGED 98% IN 2023; IT COULD GET WORSE THIS YEAR
In total, the job cuts will impact 8% of the company’s gaming division, which employs about 22,000 people, the outlet reported.
In an email to staff, Microsoft Gaming CEO Phil Spencer told employees that “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.”
THE NUMBER OF HIGH-PAYING JOBS IS DWINDLING
Spencer continued by saying that the company has “set priorities, identified areas of overlap, and ensured that we’re all aligned on the best opportunities for growth.”
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MSFT | MICROSOFT CORP. | 404.87 | +2.31 | +0.57% |
The news comes just three months after the company closed its $69 billion purchase of Activision Blizzard after months of battling regulatory hurdles.
In the deal, Microsoft acquired some of the most popular gaming franchises in history on console, PC and mobile platforms, including Pitfall, Call of Duty, World of Warcraft and Candy Crush.
Microsoft did not respond to FOX Business’ request for comment.
