Microsoft's Gaming CEO, Phil Spencer, has announced a reduction of approximately 1,900 jobs from its video gaming division. The impacted departments include Xbox, ZeniMax and newly acquired Activision Blizzard. Spencer outlined that the decision was due to overlapping areas between Microsoft Gaming and Activision Blizzard, in an effort to streamline for a sustainable cost structure to support overall business growth.
Spencer acknowledged that the decision to cut about 8.6 percent of its 22,000 strong workforce was a difficult one and stated that the impacted employees will be offered suitable severance benefits according to local employment laws.
Furthermore, Microsoft has also decided to cancel a survival video game called 'Odyssey.'
Notably, last year Microsoft bought Activision Blizzard, the creators of 'Call of Duty' and 'Warcraft series,' in a noteworthy $69 billion deal. Although the acquisition was initially halted by the Federal Trade Commission over fears of harming industry competition, it finally received approval after a favorable federal court ruling.
In another recent internal announcement, Microsoft's game content and studios president, Matt Booty, informed staff of departures at the top level - Blizzard Entertainment President Mike Ybarra and design chief Allen Adham.
These job cutbacks at Microsoft are part of a larger trend in the video gaming industry. Recently, Riot Games and Amazon's gaming streaming company Twitch saw layoffs of 530 and around 500 employees respectively.
