Microsoft Fires 1,900 Xbox, Bethesda, Activision Blizzard Workers

In the latest industry news, there have been some developments concerning Microsoft’s Xbox division. Last year, they completed their acquisition of Activision Blizzard and have recently reaffirmed their commitment to supporting Nintendo platforms.

According to a statement from Phil Spencer, the head of Xbox and Microsoft gaming, it has been announced that a significant number of positions, specifically 1,900 out of a total of 22,000, have been eliminated.

This encompasses various positions at ZeniMax (Bethesda) and Activision Blizzard. In order for the leadership of the business to be on the same page, it is crucial to establish a clear strategy and execution plan that can sustain the growth of the entire business while maintaining a reasonable cost structure. Here is the complete statement from Phil:

Phil Spencer: “It’s been a little over three months since the Activision, Blizzard, and King teams joined Microsoft. 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. Together, we’ve set priorities, identified areas of overlap, and ensured that we’re all aligned on the best opportunities for growth.

As part of this process, we have made the painful decision to reduce the size of our gaming workforce by approximately 1,900 roles out of the 22,000 people on our team. The Gaming Leadership Team and I are committed to navigating this process as thoughtfully as possible. The people who are directly impacted by these reductions have all played an important part in the success of Activision Blizzard, ZeniMax and the Xbox teams, and they should be proud of everything they’ve accomplished here. We are grateful for all of the creativity, passion and dedication they have brought to our games, our players and our colleagues. We will provide our full support to those who are impacted during the transition, including severance benefits informed by local employment laws. Those whose roles will be impacted will be notified, and we ask that you please treat your departing colleagues with the respect and compassion that is consistent with our values.

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. 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.”

Microsoft has reached a market cap of $3 trillion, making it the second company in history to achieve this milestone, following Apple. This significant announcement comes on the same day as Microsoft’s historic achievement. One factor contributing to this success is the strategic decision-making by Microsoft’s CEO, Satya Nadella. Over the past decade, Nadella has made key acquisitions and investments in AI and ‘Copilot’, as well as popular games and IPs like Minecraft.

This recent wave of layoffs is just another addition to the ongoing series of job cuts that have been happening throughout the year. Unfortunately, several other companies have also been forced to reduce their workforce. Earlier this week, Riot Games made the decision to lay off 530 employees worldwide.

Microsoft, Xbox, Bethesda, and Activision Blizzard have brought a range of exciting games to the Nintendo Switch, including Minecraft Legends, Overwatch 2, The Elder Scrolls V: Skyrim, and Diablo. They have also emphasized that Nintendo users can look forward to a closer connection with the Xbox family in the future. In addition, a partnership has been established to bring Call of Duty to Nintendo platforms for the next decade. Discover all the details about the recent Microsoft layoffs on our sister site, Pure Xbox.