Microsoft fires 2,000 professionals from the gaming division, who worked on iconic titles such as 'Call of Duty' and 'Candy Crush'
The layoffs occurred at recently acquired companies, such as Activision, Blizzard and King, as well as in the Xbox sector, covering video games, studios and the Gamepass service. Phil Spencer, the head of the gaming division, assured that Microsoft will provide "support to everyone affected" by the layoffs.
The company's gaming sector had 22 thousand employees before the layoffs - Photo Reproduction/Studio/stock.adobe.com
The technology giant Microsoft held this Thursday (25) a layoff of 1,900 professionals in its gaming division. The most affected segments were the companies Activision, Blizzard and King, acquired for US$69 billion in a transaction completed in October 2023, along with the Xbox division, which encompasses the video game console, game development studios and the Gamepass service. . Before these layoffs, the company's gaming area had approximately 22 thousand employees. Microsoft, valued at more than US$3 trillion, is the second company to reach the trillion mark in market value, behind only Apple.
“The people directly affected by these reductions have played an important role in the success of Activision Blizzard, ZeniMax and the Xbox teams, and should be proud of everything they have achieved here. We are grateful for all the creativity, passion and dedication you have brought to our games, players and colleagues. We will provide our full support to those impacted during the transition, including termination benefits in accordance with local employment laws. Those whose roles will be impacted will be notified, and we ask that they treat their departing colleagues with respect and compassion, consistent with our values,” he stated in the document, sent to the international press.
Impact on popular franchises
Among the professionals affected were members of the teams responsible for bringing some of the most beloved titles to life of the gaming industry. The renowned "Call of Duty" series, a franchise that has become synonymous with first-person shooters, is managed by Activision, while Blizzard is recognized for titles such as "World of Warcraft", "Overwatch", "Diablo" and " Hearthstone." In turn, King is responsible for the phenomenon of mobile games, such as "Candy Crush", the iconic casual puzzle game. Furthermore, it is important to mention that Blizzard's president, Mike Ybarra, and one of the studio's founders, Allen Adham, have left the company.
Reasons behind the layoffs
In a statement sent to employees impacted by the layoffs, Xbox division leader Phil Spencer explained that the cuts occurred due to the identification of synergies between the two companies. Spencer assured employees that both Microsoft and Activision are committed to establishing a "sustainable cost structure" for the expansion of the online gaming sector, which currently employs 22,000 people. He highlighted setting priorities, identifying areas of overlap, and ensuring alignment around the best growth opportunities for all.
In 2022, Microsoft acquired Activision Blizzard, one of the main global companies in the gaming sector, for a significant sum of US$68.7 billion, approximately R$379 billion. This transaction represented the largest acquisition ever made in the games market. The deal closed in October 2023. It is worth noting that Microsoft has not announced major layoffs since the previous year, when it affected 10 thousand employees.
