Blizzard president Mike Ybarra said it’s time for him to become Blizzard’s ‘biggest fan from the outside’.
Microsoft is reportedly planning to lay off 1,900 employees at Activision Blizzard and Xbox – both owned by the software giant – to cut costs in its growing gaming business.
In an internal memo from Microsoft Gaming CEO Phil Spencer shared by The Verge, the company confirmed it is cutting the roles from its 22,000-strong team, representing more than 8pc of its headcount.
“As we move forward in 2024, 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,” Spencer wrote in the memo.
“Together, we’ve set priorities, identified areas of overlap and ensured that we’re all aligned on the best opportunities for growth.”
Other than Activision and Xbox, some employees at ZeniMax, another video game company owned by Microsoft, will also be affected by the layoffs.
“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. Although this is a difficult moment for our team, I’m as confident as ever in your ability to create and nurture the games, stories and worlds that bring players together,” Spencer went on.
Mike Ybarra, president of Blizzard, confirmed the layoffs and announced his departure from the company.
I want to thank everyone who is impacted today for their meaningful contributions to their teams, to Blizzard, and to players’ lives. It’s an incredibly hard day and my energy and support will be focused on all those amazing individuals impacted – this is in no way a reflection…
— Mike Ybarra 🎄 (@Qwik) January 25, 2024
“It’s an incredibly hard day and my energy and support will be focused on all those amazing individuals impacted – this is in no way a reflection on your amazing work,” he wrote on X.
“Leading Blizzard through an incredible time and being part of the team, shaping it for the future ahead, was an absolute honour. Having already spent 20 [plus] 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.”
Microsoft confirmed its acquisition of Activision Blizzard last October after a long wait to get approval from regulators around the world, in what became the biggest gaming deal in history.
News of the gaming layoffs comes just days after Microsoft made history this week by becoming the second company ever to reach a $3trn valuation, a club previously exclusive to Apple.
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