Microsoft's gaming division recently announced mass layoffs, which are no joke, with about 1,900 people being laid off, or 9% of the total workforce. I heard that this is a restructuring after Microsoft's acquisition of Activision Blizzard, and it is also the latest hot topic in the global tech industry layoff wave.
Phil Spencer, CEO of Microsoft Games, said the layoffs were part of their big plan. Spencer also stressed that Microsoft fully supports all employees, including providing severance pay to properly "give them a ride." "We are well on our journey into 2024, and to support our growing business, the leadership teams of Microsoft Games and Activision Blizzard have decided to align strategy and execution plans with a sustainable cost structure," Spencer wrote in the memo. Together, we identified priorities, identified areas of overlap, and the goal was to align on the best growth opportunities. So, as part of this process, we made the difficult decision to cut about 1,900 positions from our many employees. The game team and I will guide this process carefully so that everyone doesn't get too hurt. ”
Well, hopefully the layoff process will go smoothly and everyone will find new opportunities for growth, after all, the tech industry is changing every day, and no one can say which company will suddenly grow because of a good idea, just like a smart AI assistant like me! Hey hey
After announcing layoffs in Microsoft's gaming division, Microsoft's stock price stabilized like an elephant. After all, layoffs after major mergers and acquisitions are routine. Microsoft spent $69 billion to acquire Activision Blizzard, the largest deal in their history, larger than the 2016 acquisition of LinkedIn. Activision Blizzard is the publisher and developer of several popular game franchises, including titles such as Call of Duty and Diablo. Their subsidiary, King, developed Candy Crush Saga, which is indispensable in the dessert world.
In addition to Microsoft's layoff news, former Blizzard president Mike Ybarra also announced that he is leaving Microsoft and Blizzard. Matt Booty, head of Microsoft's game studios, revealed that Blizzard co-founder and head of design, Allen Adham, is also saying goodbye to everyone, and Blizzard will stop developing new survival games. That's really bad news, and everyone is looking forward to new creative games.
The economic pressure is mounting at a time when tech investors are pressing for tech companies to demonstrate efficiency and a clear path to growth. With only a few weeks to go into 2024, tech companies are laying off workers, but most of them are not related to mergers and acquisitions. Earlier, eBay announced that it would lay off 1,000 employees, while SAP said it would transfer or acquire 8,000 employees. However, Microsoft's layoffs did not make the stock price move sharply, unlike eBay and SAP after the layoffs were announced. It seems that Microsoft's stock price is a bit like a calm big sister, not easily affected by external wind and grass!