Microsoft is cutting 1,900 jobs at Activision Blizzard and Xbox
Microsoft to Lay Off 1,900 Employees at Activision Blizzard and Xbox
(Reuters) – In a move that has sent shockwaves through the gaming industry, Microsoft (MSFT.O) announced on Thursday that it will be letting go of 1,900 employees at Activision Blizzard and Xbox. This latest round of cuts adds to the wave of massive layoffs that have plagued the technology sector in recent years.
The cuts, which represent about 8% of the overall Microsoft Gaming division, will primarily affect Activision Blizzard. This news comes alongside the departure of Blizzard President Mike Ybarra and Chief Design Officer Allen Adham, as well as the cancellation of a highly anticipated survival game by Blizzard.
Microsoft’s decision to downsize comes just months after its $69 billion acquisition of Activision Blizzard, a move aimed at bolstering its presence in the competitive videogaming market and challenging industry leader Sony.
“Microsoft’s announcement that it will be laying off 1,900 video game workers makes clear that, even in a successful and highly profitable industry, job security is not guaranteed without a voice on the job,” stated the Communications Workers of America (CWA).
“We will continue to support workers at Microsoft and throughout the video game industry who seek to have a union voice in the workplace,” the CWA added.
Other major tech companies, including Alphabet (GOOGL.O), Amazon.com (AMZN.O), and ebay (EBAY.O), have also recently implemented significant layoffs as part of cost-cutting measures to improve profitability.
According to tracking website Layoffs.fyi, a staggering 21,000 workers have been let go from 76 tech companies in January alone. In 2023, the tech sector saw a total of 168,032 job cuts, the highest number across industries, as reported by Challenger, Gray and Christmas.
While analysts and industry experts predict fewer layoffs this year, companies racing to catch up in the AI space may still downsize to offset the substantial investments they are making in the technology.
The Verge was the first to report on Microsoft’s latest round of job cuts.
Reporting by Aditya Soni and Akash Sriram in Bengaluru; Additional reporting by Samrhitha Arunasalam; Editing by Devika Syamnath, Arun Koyyur and Krishna Chandra Eluri
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How does Microsoft’s downsizing in the wake of its acquisition of Activision Blizzard reflect the ongoing challenges faced by employees in the technology sector?
Ies like Microsoft’s recent announcement highlight the ongoing challenges faced by employees in the technology sector.
The decision to lay off 1,900 employees at Activision Blizzard and Xbox is significant and has sent shockwaves throughout the gaming industry. It represents approximately 8% of the overall Microsoft Gaming division and will primarily affect Activision Blizzard. This news comes in conjunction with the departure of Blizzard President Mike Ybarra and Chief Design Officer Allen Adham, as well as the cancellation of a highly anticipated survival game by Blizzard.
Microsoft’s move to downsize its workforce comes just months after its $69 billion acquisition of Activision Blizzard. The acquisition was seen as a strategic move to strengthen Microsoft’s presence in the competitive videogaming market and directly challenge industry leader Sony. However, the decision to lay off a significant number of employees raises questions about the stability and future direction of the newly combined company.
In response to Microsoft’s announcement, the Communications Workers of America (CWA) emphasized the importance of job security and the need for a voice in the workplace. They stated, “Microsoft’s announcement that it will be laying off 1,900 video game workers makes clear that, even in a successful and highly profitable industry, job security is not guaranteed without a voice on the job.” The CWA vows to continue supporting workers at Microsoft and throughout the video game industry who seek union representation.
Microsoft is not alone in implementing large-scale layoffs as part of cost-cutting measures. Other major tech companies, such as Alphabet, Amazon.com, and ebay, have also recently made significant cuts to their workforce in an effort to improve profitability. According to tracking website Layoffs.fyi, a staggering 21,000 workers have been let go by 76 tech companies in January alone. In 2023, the tech sector saw a total of 168,032 job cuts, the highest number across industries, according to Challenger, Gray and Christmas.
While analysts and industry experts predict fewer layoffs in the technology sector this year, Microsoft’s recent announcement serves as a reminder that employees in this industry still face uncertainty and the need for job security. As the gaming industry continues to evolve and competition intensifies, it remains to be seen how these layoffs will impact the overall landscape and if other companies will follow suit. The focus on improving profitability should not come at the expense of employees, and it is crucial for companies to prioritize the well-being and livelihoods of their workforce.
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