Three months after completing its record-breaking takeover of Activision-Blizzard, Microsoft is laying off 1,900 employees in the video games segment, according to a media report. Two prominent names are also to go.
The online magazine IGN is said to have received an internal message from Xbox boss Phil Spencer to the gaming workforce announcing the mass layoffs. 1,900 of the total of around 22,000 jobs in Microsoft’s video games segment would be cut as a result. This step is a “painful decision”, as IGN quotes from the letter.
“The leadership of Microsoft Gaming and Activision Blizzard are committed to agreeing on a strategy and execution plan with a sustainable cost structure that will support our entire growing business,” Spencer continued. The takeover of Activision Blizzard recently cost Microsoft almost 69 billion US dollars.
A few days after breaking the stock market barrier
The gaming segment of the technology heavyweight includes the developer studios Bethesda Softworks, Treyarch and Raven Software. It is still unclear whether the branches in Germany will be affected by the job cuts. Last year’s waves of redundancies also cost jobs at the German headquarters in Munich-Schwabing.
Blizzard Entertainment President Mike Ybarra and Blizzard co-founder Allen Adham have also announced their departure. Microsoft, whose stock market value has recently risen to over three trillion US dollars, has not yet officially confirmed the redundancies. A few days ago, Riot Games already made people sit up and take notice, with the LoL developer cutting 530 jobs.
