Microsoft has announced a significant layoff of 1,900 employees from its Activision Blizzard and Xbox divisions. The layoffs primarily affect roles at Activision Blizzard, with some employees from Xbox and ZeniMax also being impacted. The cuts represent approximately 8 percent of the overall Microsoft Gaming division, which currently employs around 22,000 people.

The news was confirmed through an internal memo from Microsoft Gaming CEO Phil Spencer, who expressed the company’s commitment to aligning on a strategy and execution plan with a sustainable cost structure to support the growing business. Spencer acknowledged the painful decision to reduce the gaming workforce and emphasized the importance of supporting the affected employees during the transition, including providing severance benefits in line with local employment laws.

Additionally, the memo highlighted the departure of Blizzard president Mike Ybarra from the company. Ybarra’s decision to leave comes alongside the cancellation of a survival game under Blizzard’s development.

Despite the challenging circumstances, Spencer expressed confidence in the team’s ability to continue creating and nurturing games, stories, and worlds that bring players together. The company remains committed to investing in areas that will drive business growth and support the strategy of expanding game offerings to a global audience.