Microsoft lays off 1,900 employees in its gaming division following Activision Blizzard buyout

NEW YORK — Microsoft is laying off about 1,900 employees in its gaming division, according to an internal company memo, just over three months since the tech giant completed its $69 billion purchase of video game maker Activision Blizzard. “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,” Microsoft Gaming CEO Phil Spencer wrote in the memo. “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,” Ybarra wrote — later adding that his time leading Blizzard “was an absolute honor.” Microsoft closed its $69 billion Activision Blizzard deal in October, nearly 22 months after the deal was first announced after overcoming opposition from antitrust regulators in the United Kingdom and European Union. In an unusual arrangement for the gaming industry, Microsoft has pledged to stay neutral if Activision Blizzard workers in the U.S. and Canada seek to organize into a labor union.