The first substantial fallout of the Microsoft-Activision Blizzard merger has arrived. Microsoft has let go 1,900 of its employees across Zenimax, Xbox, and Activision Blizzard, with the majority of the layoffs affecting the latter. Amidst this, Blizzard's current president, Mike Ybarra, is stepping down from his role at the company, as well as Blizzard co-founder Allan Adham.

Xbox's CEO Phil Spencer explained the reasoning for the massive layoffs in an email to staff (courtesy of The Verge).

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 1900 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.

However, it appears that the employees who were let go from the company were not well informed as to who lost their job and who got to stay, as notable journalist Jason Schreier commented that those within Xbox were not directly told, and had to wait to be notified as to whether or not they were still employed by Microsoft. These firings represent 8% of Microsoft's gaming divisions across the board.

Also affected by this was one of Blizzard's upcoming titles, which was originally announced in 2022. It was set to be a survival game, and had been in development for over six years. Now, the game is canceled, and a majority of the team working on the title have been fired, with the remainder being moved to other Blizzard projects.

Source

 

[chrisrlink]

seems like an elon musk move rather than a MS one sucks though either way

 

[Ryab]

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The first substantial fallout of the Microsoft-Activision Blizzard merger has arrived. Microsoft has let go 1,900 of its employees across Zenimax, Xbox, and Activision Blizzard, with the majority of the layoffs affecting the latter. Amidst this, Blizzard's current president, Mike Ybarra, is stepping down from his role at the company, as well as Blizzard co-founder Allan Adham.

Xbox's CEO Phil Spencer explained the reasoning for the massive layoffs in an email to staff (courtesy of The Verge).



However, it appears that the employees who were let go from the company were not well informed as to who lost their job and who got to stay, as notable journalist Jason Schreier commented that those within Xbox were not directly told, and had to wait to be notified as to whether or not they were still employed by Microsoft. These firings represent 8% of Microsoft's gaming divisions across the board.

Also affected by this was one of Blizzard's upcoming titles, which was originally announced in 2022. It was set to be a survival game, and had been in development for over six years. Now, the game is canceled, and a majority of the team working on the title have been fired, with the remainder being moved to other Blizzard projects.

Source

Gotta get those record profits

 

[DeadSkullzJr]

Not sure how to feel about this honestly. With the outcome of Blizzard and the general actions of Microsoft, I don't know to feel bad, feel just fine, etc. Finding out late sucks already, losing a job sucks even more, I hope these folks find a good alternative career at least.

 

[Xzi]

That's pretty rough, but who can honestly say that Activision or Blizzard had been making a lot of good decisions lately? Microsoft already had a lot of overlapping talent, so they may have just wanted the IPs more than anything. Hopefully they kept the former devs of Vicarious Visions, at least.

 

[ZeroT21]

Gotta make those numbers look gud on paper for investers

 

[Noctosphere]

ok... one question : wtf???
Their decisions are getting dumber and dumber. Starcraft is one of the franchise Blizzard was most known for. They wanted to release a MMORPG based on Starcraft and somehow, the project ended up becoming Overwatch.
Blizzard's games were part of my childhood, and it's just very sad to see it crumble like that.
It's no surprise that Frost Giants Studio came to life. I hope that more and more big studio have their employees leave to make new studios that make what gamers really want...
Nintendo next? I hope so...

 

[The Catboy]

10/10 Typical Microsoft move

 

[Kioku]

Not sure how to feel about this honestly. With the outcome of Blizzard and the general actions of Microsoft, I don't know to feel bad, feel just fine, etc. Finding out late sucks already, losing a job sucks even more, I hope these folks find a good alternative career at least.

Reading through some of the posts, plenty of those who were let go were comfortable enough in their position that they never considered the possibility. Portfolios and resumes are outdated and they’re not sure what to do. It does suck, especially when you feel good in your position to lose it in the blink of an eye. It’s always a good idea to keep your options open and information up to date.

 

[HellGhast]

Sucks for the guys and gals who lost their jobs, what a way to start a new year.

Capitali$m baby, Micro$oft chasing the Almighty Dollar at the expense of us peasants.

 

[cluesagi]

"Thanks for making Starfield, now GTFO"

 

[x65943]

If Microsoft is good at anything it's destroying game studios

*Cries in rareware*

 

[huma_dawii]

Jesus Christ, every company is doing this right now, my company let go about 1000 employees this year. I hate the internet sometimes.

 

[Viri]

I mean why is anyone shocked? This shit happens pretty much every time a company is bought up, or merged. If WB/Discovery merge with Paramount, they're going to fire a shit ton of people. Microsoft is probably going to fire more people.

 

[K3Nv2]

Can't believe a big company fired a bunch of people to save money that weren't needed.

 

[Kioku]

I mean why is anyone shocked? This shit happens pretty much every time a company is bought up, or merged. If WB/Discovery merge with Paramount, they're going to fire a shit ton of people. Microsoft is probably going to fire more people.

It’s not that people were laid off that surprised me, it’s really the groups that were targeted. Their customer support group, QA groups, and others that are confusing. It’s one thing to cut forces down by a percentage, it’s another to seemingly gut what I thought would be critically important groups. Oh well.

 

[matpower]

I mean why is anyone shocked? This shit happens pretty much every time a company is bought up, or merged. If WB/Discovery merge with Paramount, they're going to fire a shit ton of people. Microsoft is probably going to fire more people.

My thoughts exactly, having lived through 2 different merges and acquisitions in the same company, I've seen my coworkers lose their jobs on a whim. Unfortunately, I think most people don't consider it, given that they think their positions are important (and maybe it was before the merge) or just plain don't know about it, you don't see your workplace getting acquired/merged that often.
I really feel sorry for them, but in hindsight, they should've seen it coming.

It’s not that people were laid off that surprised me, it’s really the groups that were targeted. Their customer support group, QA groups, and others that are confusing. It’s one thing to cut forces down by a percentage, it’s another to seemingly gut what I thought would be critically important groups. Oh well.

These groups can be easily replaced by Microsoft's own existing groups, if needed. IMO the biggest surprise is that the current ActiBlizz was obviously forced to resign, the dude was just a while ago welcoming Phil on stage as if MS were their savior and then he's just gone, to be replaced next week.

 

[raxadian]

On one hand is sad that so many people lost their jobs on the other is Blizzard so fck them!

 

[Viri]

If your company is about to merge or be bought out, you should assume the worst. No position is safe, not even the CEO. Get your resume ready!

 

[Kioku]

My thoughts exactly, having lived through 2 different merges and acquisitions in the same company, I've seen my coworkers lose their jobs on a whim. Unfortunately, I think most people don't consider it, given that they think their positions are important (and maybe it was before the merge) or just plain don't know about it, you don't see your workplace getting acquired/merged that often.
I really feel sorry for them, but in hindsight, they should've seen it coming.

These groups can be easily replaced by Microsoft's own existing groups, if needed. IMO the biggest surprise is that the current ActiBlizz was obviously forced to resign, the dude was just a while ago welcoming Phil on stage as if MS were their savior and then he's just gone, to be replaced next week.

That's just it, though. Reports (rumors more likely?) are already going around that Microsoft is wanting to outsource most of it. I believe it's speculation, but I don't think for a second that Microsoft has its own "groups" for some of these and instead relies on a third party halfway across the world. Kinda rubs salt in the wound.