Microsoft reportedly lays off 1,900 employees from gaming division [UPDATED]

Microsoft is cutting jobs a few months after closing its acquisition of Activision Blizzard.

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Updated on 1/25/24 at 9:44 a.m. ET: A report from The Verge claims that the majority of today's layoffs at Microsoft impact Activision Blizzard, though there have been some layoffs at ZeniMax and Xbox proper. As a result, Blizzard's previously-announced survival game has been cancelled. Blizzard President Mike Ybarra is also leaving the company.


Original story: A massive round of layoffs may have just hit the gaming industry as IGN is reporting that Microsoft is cutting the jobs of 1,900 employees. This comes just a handful of months after the trillion-dollar company was able to close its acquisition of Activision Blizzard. Xbox’s Phil Spencer reportedly shared the following memo internally.

Microsoft has yet to provide a statement on the layoffs. We’ll be sure to update this article with new information if that changes.

News Editor

Donovan is a young journalist from Maryland, who likes to game. His oldest gaming memory is playing Pajama Sam on his mom's desktop during weekends. Pokémon Emerald, Halo 2, and the original Star Wars Battlefront 2 were some of the most influential titles in awakening his love for video games. After interning for Shacknews throughout college, Donovan graduated from Bowie State University in 2020 with a major in broadcast journalism and joined the team full-time. He is a huge Scream nerd and film fanatic that will talk with you about movies and games all day. You can follow him on twitter @Donimals_

From The Chatty
  • reply
    January 25, 2024 6:38 AM

    Donovan Erskine posted a new article, Microsoft reportedly lays off 1,900 employees from gaming division

      • reply
        January 25, 2024 6:22 AM

        Fucking hell.....

      • reply
        January 25, 2024 6:27 AM

        Hope it was the Diablo 4 team. Fuck that game.

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          January 25, 2024 8:07 AM

          This is a gross post

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          January 25, 2024 9:29 AM

          Diablo 4 probably wasn't your cup of tea but they worked hard on that garbage. Blame management for forcing this garbage.

          There are lot of worse games than D4 out there. Starfield lol

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        January 25, 2024 6:28 AM

        So fucking sad.. "While actual figures are difficult to get ahold of, estimates suggest the number of workers laid off in games last year approached or exceeded 10,000, and 2024 isn't looking much better."

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          January 25, 2024 6:46 AM

          It’s fucking nuts. Games feels even harder hit than tech by this point. Dunno if the numbers suppprt that feeling though.

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        January 25, 2024 6:31 AM

        I still can’t believe they paid 69 billion for Activision

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          January 25, 2024 6:42 AM

          nice

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          January 25, 2024 6:57 AM

          so stupid, why would they pay lots of money to buy a company that they will then end up laying off.

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            January 25, 2024 6:59 AM

            MILK. THOSE. FRANCHISES

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            January 25, 2024 7:01 AM

            Franchises. MS now basically owns WoW, Warcraft, Starcraft, All Activision shit, etc.. People don't matter.

            To be honest this is the most logical of all the layoffs because of the merging of the companies. Lots of redundancy, etc.

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            January 25, 2024 7:07 AM

            It's 10 percent, not the whole lot. As said in comms probably about redundant jobs etc. It sucks but i am not surprised.

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            January 25, 2024 7:34 AM

            You don't need those Activision HR, marketing and other support folks when the big Microsoft machine already has that covered. I'm guessing that's a lot of it.

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              January 25, 2024 9:12 AM

              Blizzard has a pretty strong marketing team so I’d probably disagree with that.

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              January 25, 2024 10:33 AM

              So maybe layoffs might have been the wrong thing to do? Have we forgotten how bad Microsoft's marketing is?

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            January 25, 2024 7:54 AM

            When comapnaies merge there's bound to be redundancies. Especially something like HR and management.

            Then there's projects that aren't in the interest of the new owner to continue but the last company kept around for whatever reason.

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        January 25, 2024 6:40 AM

        Mike Ybarra also leaving as President of Blizzard

      • reply
        January 25, 2024 6:45 AM

        That Blizzard survival game cancelled too. Guess they decided they missed that boat.

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          January 25, 2024 7:49 AM

          think they will start working on the new Starcraft game then?

      • reply
        January 25, 2024 10:53 AM

        Jesus.

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      January 25, 2024 7:23 AM

      I'm dreading more layoffs here at MS over the coming year... despite achieving a $3 TRILLION valuation yesterday, I'm afraid leadership will do some general hit-and-run layoffs to keep investors happy because other tech giants are doing it.

      • reply
        January 25, 2024 7:29 AM

        Oh yeah, layoffs are coming

      • reply
        January 25, 2024 7:30 AM

        Didn’t you hear? Layoffs are so IN! You gotta try it.

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        January 25, 2024 8:10 AM

        Absolutely. Tech is getting lean no matter what it seems.

      • reply
        January 25, 2024 2:39 PM

        Oh, you work for Uncle Satya, too?

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          January 25, 2024 2:53 PM

          I toil in the code mines for his table scraps!

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            January 25, 2024 2:54 PM

            Hey what's it like in those rarefied SWE heights?? I'm down with the SRE troglodytes.

            • reply
              January 25, 2024 7:52 PM

              A lot of coming up with clever solutions to difficult problems that the managers and product owners then get promotions for.

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        January 25, 2024 9:26 PM

        Fire the leadership and put in ChatGPT, it will do more for everyone below it than they will. The CEO can be replaced too. Just tell ChatGPT to do the stupidest shit known to man.

        That will save MILLIONS more than canning a few people making 5 figures.

    • reply
      January 25, 2024 7:50 AM

      Daily reminder to buy all the games I work on so I can work on more of them.
      You can buy other games too....just later.

      This industry sure is a rollercoaster sometimes!

    • reply
      January 25, 2024 7:52 AM

      They probably needed a few extra bucks after that $69 billion Activision buy-in.

    • reply
      January 25, 2024 8:05 AM

      Damn! Not shocked though. Are the jobs redundant with the acquisition?

    • reply
      January 25, 2024 8:08 AM

      WOW they canceled the Survival game that they were working on. I know a ton of Devs from the Hearthstone team moved to that team. Sad.

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        January 25, 2024 8:13 AM

        Doesn't mean they were laid off

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          January 25, 2024 8:18 AM

          They don't even know yet, which is sad. But if they cancel a game your working on ... one could imagine theyd be part of the layoffs? We'll see. Sad situation.

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            January 25, 2024 8:22 AM

            Certainly possible, but Microsoft is big and always needs more developers on other projects.

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              January 25, 2024 8:43 AM

              maybe you should have told them that before they laid off 1,900 employees

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              January 25, 2024 10:01 AM

              Saw a bunch of devs I followed on twitter just get canned. Yea, most of the survival team is gutted.

              • reply
                January 25, 2024 10:02 AM

                That's shitty

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                January 25, 2024 10:19 AM

                I follow one that just 13 hours ago tweeted Blizzard was hiring :(

      • reply
        January 25, 2024 9:12 AM

        I thought Blizzard had completely missed the boat on the survival genre, but Palworld got me second-guessing that. Never expected to see success like that again.

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          January 25, 2024 7:15 PM

          I'm skeptical about Palworld's longevity tbh

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            January 25, 2024 9:28 PM

            It doesn't really matter that much. It's the writing on the wall. Innovate immediately or enjoy death.

      • reply
        January 25, 2024 1:39 PM

        Damn shame, from what I'd heard it was real real good

    • reply
      January 25, 2024 8:24 AM

      I'd assume a large portion of these cuts are part of the overlapping structure that both orgs shared pre-merger.

      • reply
        January 25, 2024 8:40 AM

        Yeah but a game being cancelled (one *as far as we know now*) isn't promising

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          January 25, 2024 9:30 AM

          I've seen a couple places mention that it's been in dev hell for a while.

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      January 25, 2024 8:54 AM

      Total games industry job losses at 5000 in just 2024 alone.

      Add that at least 9000 were lost in 2023

      https://www.videogameschronicle.com/news/over-5000-games-industry-workers-have-already-lost-their-jobs-in-2024/

      • reply
        January 25, 2024 1:44 PM

        Yup: https://twitter.com/tha_rami/status/1750532050833322419

        Around TGAs I talking about the 2023 layoffs with someone who up until a few years ago was very high up in that world. He recently retired so he might have felt a bit more open to discuss this even though it was just one to one at dinner, but he said that there was way more pain to come in 2024.

        Now we see what he was talking about lol

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        January 25, 2024 9:29 PM

        Sounds like a management issue. Get them fired.

    • reply
      January 25, 2024 9:28 AM

      Please tell me Todd Howard's job is safe!!!

      • reply
        January 25, 2024 10:19 AM

        I just checked, sadly he's been let go :(

    • reply
      January 25, 2024 9:32 AM

      would be interested in seeing the breakdown on this. obviously there'd be a lot of redundancy in combining these massive organizations, and hopefully they fired absolutely everyone even tangentially associated with warzone (jk jk, kinda).

    • reply
      January 25, 2024 10:14 AM

      Insane :(

      I’ve seen rumours about them starting to release games for Switch and PS, probably years after they debut on PC/Xbox.

      Kind of makes sense once you acquire so many studios, they have 23 right now, with the long development times is gamepass subs and p/xbox sales enough to sustain all of that?

    • reply
      January 25, 2024 10:53 AM

      https://x.com/jezcorden/status/1750590022842278391

      That Series X refresh model from the FTC leak “now adorably digital” seems a lock now.

      • reply
        January 25, 2024 1:58 PM

        Senua 2 is download only, Xbox revision is digital only, retail team is downsized, the writing is clearly on the wall for physical media at least as far as Microsoft is concerned.

        • reply
          January 25, 2024 1:59 PM

          Speaking of.

          Initial trailers painted the sequel as more lavish, longer, bigger etc. But the more recent news of it being less than 8 hours, being budget priced digital only, makes me think it got downscoped hard

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            January 25, 2024 2:04 PM

            It sounds like the choice was they ship a game in 2024 or ship it in 2027. I like short single player games but we'll see if it was the right choice or not pretty soon.

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            January 25, 2024 3:52 PM

            I think it was always going to be similar to the 1st game

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      January 25, 2024 1:29 PM

      Looks like Blizzard Team 4 (Overwatch) was hit hard

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        January 25, 2024 2:11 PM

        Seeing a fair amount of these: https://twitter.com/mollsiewallsie/status/1750606930102395027

        Ugh, and this is a senior environmental artist, not a G&A redundancy. It feels like they had just enough to keep the live service game in good shape. Stripping the team of resources is going to reflect in the state of the game later this year.

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          January 25, 2024 2:55 PM

          "Why are Western games plagued with me-too copypasta design and sameness?"

          "Oh, 'cause we hire up and then fire people after they ship, then they go somewhere else and have to work with a completely new team and org structure and possibly learn new tooling and processes, only to get dumped again in 2-3 years, rinse repeat."

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            January 25, 2024 6:10 PM

            You have to understand that institutional knowledge is overrated and good work comes from short term employment where you're constantly looking over your shoulder and wondering if you're next.

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              January 25, 2024 6:12 PM

              What sucks about Blizzard is that it was supposed to be that place, and it was for a very long time! I have friends who thought they'd be lifers over there, almost all of them with their ten year shields and all with five year swords.

              None of them are there anymore. A shame!

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          January 25, 2024 9:31 PM

          Doesn't surprise me OW2 was launched to counter bad press about rape and sexual assault. Once it got to a playable state they were always going to chop the dev team no matter how much money it makes.

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            January 25, 2024 10:18 PM

            OW2 was announced before the press (centering on the Diablo and WoW teams btw) came out. As stories have said, OW2 was supposed to be the middle step before the eventual MMO dream of Project Titan that Jeff Kaplan and the core team hoped to resurrect. It can be debated if this was a mistake or not, I would argue that them creating a successful multiplayer shooter wasn't necessarily a greenlight to make a PvE and then an MMO, but that's neither here nor there at this point.

            Post-merger cutbacks were inevitable unfortunately, just because that's what happens. OW2 has 50M active players and generated $225 million in revenue last year and that still meant cutting senior staff.

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              January 25, 2024 10:20 PM

              It was definitely announced, but OverWatch 1 was still going strong with literally everyone. 2 was pushed forwards to change the narrative.

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                January 25, 2024 11:50 PM

                OW2 came out later than they anticipated because they never solved the PvE they announced, I'm not sure how that tracks

      • reply
        January 25, 2024 3:53 PM

        25% of sledgehammer games

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        January 25, 2024 1:44 PM

        Works when you need to distinguish yourself on quality.

        But if you sell crack to crackheads, fuck them devs

        • reply
          January 25, 2024 2:01 PM

          Western AAA game development stays losing, through no fault of the developers.

          I really hope id Software stays shielded for the foreseeable future.

        • reply
          January 26, 2024 12:26 AM

          Yeah, Nintendo doesn’t have a shovelware platform like Gamepass to keep shoveling shit into.

    • reply
      January 25, 2024 1:51 PM

      Was to be expected, sadly.

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      January 25, 2024 6:21 PM

      good thing we let them buy Activision Blizzard so Bobby Kotick got his!

      • reply
        January 25, 2024 7:12 PM

        So many of us here called this shit out when the merger was happening. If the “inflation” in consumer goods alone still hasn’t made it sink in yet for people: industry consolidation is bad

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          January 25, 2024 9:20 PM

          Bobby Kotick was the sin-eater for the merger. People were so excited to get that little gremlin out of there and "good guy Phil Spencer" that they forgot about what happens under these circumstances.

      • reply
        January 25, 2024 10:19 PM

        From one of the ex-senior designers, what a king

    • reply
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