Microsoft acquired gaming giant Activision Blizzard in October for about $69 billion, and it's wasting no time finding ways to cut costs. The company announced it would lay off 1,900 employees at Activision Blizzard and its Xbox division. This means that 8% of employees are in the gaming department.
Microsoft has laid off 1,900 employees from Activision Blizzard and the company's long-standing Xbox gaming division, The Verge reports. The layoffs represent 8% of the company's 22,000 employees dedicated to video games and gaming hardware.
The layoffs come just months after Microsoft acquired Activision Blizzard. Diablo and call of duty, In a huge deal worth about $69 billion. As Breitbart News previously reported:
In addition to the Xbox game console, Microsoft owns a number of extremely popular titles, including: Mine Craft, Helloand era of empire. Activision-Blizzard also owns a number of blockbuster titles, including: call of duty, overwatch and warcraft franchise.
The merger will solidify Microsoft's position as the world's second-largest video game company, nearly doubling Nintendo's revenue and putting it closer to market leader Sony.
Microsoft closed the deal quickly after receiving approval from the UK's Competition and Markets Authority (CMA), the last major regulator standing in the way.
According to The Verge, an internal memo explains the reasons for the layoffs:
It's been just over three months since Activision, Blizzard, and King teams joined Microsoft. Looking ahead to 2024, Microsoft Gaming and Activision Blizzard leadership are committed to aligning our strategy and execution plan with a sustainable cost structure that supports our entire growing business. Together, we set priorities, identified areas of overlap, and ensured we were all aligned on the best opportunities for growth.
The fallout is not limited to ordinary employees laid off by software giants. Blizzard president Mike Ybarra has reportedly resigned, as has Allen Adham, the studio's chief design officer and co-founder of the company. Additionally, Blizzard canceled a survival game that had been announced but remained untitled.
Longtime Activision Blizzard fans have felt that the quality and innovation of its games has declined in the face of a relentless profit drive. These layoffs indicate that the company doesn't have much hope of returning to its glory days. It's embedded in Microsoft's Byzantine corporate culture.
Read more at The Verge here.
Lucas Nolan is a reporter for Breitbart News covering free speech and online censorship issues.
