SAN FRANCISCO– Microsoft decided to lay off 1,900 people, 8% of its staff, from its entertainment division at a time when it consolidates the successful purchase of the maker of the popular “Call of Duty” video games, Activision Blizzard.
The head of Microsoft’s gaming division, Phil Spencer, said in a memo to employees that the cuts came after synergies were found between the two companies, the company confirmed.
Spencer told workers that Microsoft and Activision were committed to finding a “sustainable cost structure” to grow the video game business, which employs 22,000 people and includes the Xbox division for the console of the same name.
“Together we set priorities, identified areas of overlap and have ensured that we are all aligned on the best opportunities for growth,” he added.
The existence of Spencer’s note was initially reported by the news portal The Verge.
In addition to the news of the layoffs, Blizzard president Mike Ybarra announced that he would be leaving the company.
“It is a tremendously difficult day for me and my energy and support will be focused on all those incredible individuals affected” by the company’s decision, Ybarra said on his X network account, formerly Twitter.
Source: AFP
