Microsoft launched its blockbuster acquisition in January 2022. (File)
San Francisco:
Microsoft is laying off 1,900 people, or eight percent of the workforce, from its gaming division as it consolidates the blockbuster buyout of 'Call of Duty' maker Activision Blizzard.
In a memo to employees reported on Thursday by US media The Verge, the head of Microsoft's gaming division, Phil Spencer, said the cuts came after synergies were found between the two companies.
Spencer told employees that Microsoft and Activision are committed to finding a “sustainable cost structure” to grow the gaming business, which employs 22,000 people and includes the Xbox division.
“Together we set priorities, identified areas of overlap and ensured we are all on the same page on the best growth opportunities,” he added.
In addition to the layoffs, Blizzard president Mike Ybarra said he would be leaving the company.
“It's an incredibly tough day and my energy and support will be focused on all those wonderful individuals affected by this,” Ybarra said on X, formerly Twitter.
Microsoft launched its blockbuster acquisition in January 2022, an acquisition that made it the third-largest gaming company in the world by revenue.
The buyout faced strict scrutiny from regulators, including in the United States, but the transaction ultimately prevailed.
The British regulator originally blocked the deal over concerns it would hurt competition in the fast-growing cloud gaming sector, where games are purchased virtually and players can use a variety of devices rather than just consoles.
The layoffs come amid an unprecedented wave of workforce reductions at Big Tech companies that began in late 2022 but has continued into early 2024.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
