MS Acquires Blizzard, Cuts 1,900 Jobs in Gaming Division

Approximately 8-9% of 22,000 Employees

Microsoft (MS), which acquired Activision Blizzard, is carrying out layoffs of about 1,900 employees in its gaming division.

[Image source=Reuters Yonhap News]

According to AP News and others on the 25th (local time), the layoffs represent about 8-9% of the approximately 22,000 employees in MS's gaming division. This restructuring comes just over three months after MS acquired the game company Blizzard. Most of the layoffs were confirmed to be centered around Blizzard and Xbox employees.

Phil Spencer, CEO of MS Gaming Division, stated, "MS Gaming Division and Activision Blizzard are adjusting their strategy to a sustainable cost structure that can support the entire growing business," confirming that this measure is a consolidation and efficiency adjustment due to overlapping business areas following the Blizzard acquisition. Mike Ybarra, president who led Blizzard, also confirmed via his social media X (formerly Twitter) account that he will be leaving the company.

Blizzard is a developer that owns popular games such as Call of Duty, Candy Crush, and World of Warcraft. MS announced in early 2022 that it would acquire Blizzard for about $69 billion based on the stock price at that time. This deal has been noted as the largest 'deal of the century' in the tech sector.

However, locally, this layoff was considered to have been anticipated early on. MS's stock price moving sideways on the New York Stock Exchange on the same day reflects this background. Recently, restructuring has been continuing mainly among tech companies such as Google, Riot Games, eBay, and Amazon.