The latest cuts affect 8% of the Microsoft Gaming division, according to Microsoft, and are mostly occurring within the Activision Blizzard development team. Blizzard President Mike Ybarra and Design Director Allen Adham are also leaving the company, while a previously announced survival game has been canceled.
Microsoft has made the layoffs just months after completing its $69 billion acquisition of Activision Blizzard to solidify its position in the video game market, competing with leader Sony. Activision Blizzard is behind some of the best-selling titles such as Call of Duty and Diablo.
Microsoft Gaming CEO Phil Spencer explained that the layoffs are part of a larger “execution plan” to reduce overlap within the group. Microsoft will provide full support to all affected employees.
Following Microsoft’s announcement, the Voice of American Workers (CWA) – the largest media and entertainment union in the US – spoke out and said that “even if you work for a successful company in a highly profitable industry, your livelihood is not protected without a voice at work”.
Several major tech companies, including Alphabet, Amazon, and eBay, have laid off thousands of workers in recent weeks to cut costs and boost profits. According to the layoff tracking website Layoffs.fyi, more than 21,000 employees at 76 tech companies lost their jobs in January.
The tech industry will cut 168,032 jobs in 2023, the most of any industry, according to a report by recruiting firm Challenger, Gray and Christmas earlier this month. Of those, more than 10,000 will come from Microsoft.
(According to Reuters)
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