Microsoft Acquires Activision, and then Cuts 1,900 Jobs in Its Video Game Division

[Dismal_Bliss]

Microsoft Cuts 1,900 Jobs in Its Video Game Division

The reductions come three months after the tech giant completed its $69 billion acquisition of Activision Blizzard.

 

Microsoft said Thursday that it would eliminate 1,900 roles in its video game division, including at Activision Blizzard, which it acquired for $69 billion three months ago.

The job cuts will be made at the video game giant Activision, the maker of hit games like Call of Duty and Guitar Hero, as well as Xbox, according to a staff memo from Phil Spencer, the head of Microsoft Gaming, that was obtained by The New York Times.

The cuts amount to a reduction of nearly 9 percent of Microsoft’s 22,000-person video game team.

“Looking ahead, we’ll continue to invest in areas that will grow our business and support our strategy of bringing more games to more players around the world,” Mr. Spencer said in the memo.

Microsoft, which is neck-and-neck with Apple as the world’s largest public company, completed its acquisition of Activision Blizzard in October after a year of regulatory hurdles.

The head of Activision Blizzard, Mike Ybarra, also announced on the social media platform X that Thursday would be his last day at the company.

“Having already spent 20+ years at Microsoft and with the acquisition of Activision Blizzard behind us, it’s time for me to (once again) become Blizzard’s biggest fan from the outside,” Mr. Ybarra wrote.

Microsoft did not immediately respond to a request for comment.

 

[killamch89]

Not really surprised that happened as Microsoft has been laying off people left and right over the past year or so. I wouldn't say this is a good or bad thing because Activision has needed the revamp in staff as the recent harassment scandal brought a lot of issues to light in terms of the culture.

[The Blackangel]

I'm not surprised either. Microsoft seems to not really care about employees, but at the same time, buying Blizzard brought in a whole new payroll so I guess in a roundabout way I can understand why they did it. They didn't want to have to pay so many people for shit they were already doing. They just wanted the legal rights to the games that couldn't be challenged of withdrawn. They don't care about much of anything else.

[killamch89]

On 2/27/2024 at 11:59 AM, The Blackangel said:

I'm not surprised either. Microsoft seems to not really care about employees, but at the same time, buying Blizzard brought in a whole new payroll so I guess in a roundabout way I can understand why they did it. They didn't want to have to pay so many people for shit they were already doing. They just wanted the legal rights to the games that couldn't be challenged of withdrawn. They don't care about much of anything else.

To be fair, the sexual harassment scandal that Activision Blizzard was embroiled in recently could also be a factor in why they did this. Most of the culprits were still employed to the company even after the Microsoft takeover so a clear-out was needed.