Microsoft to lay off 1,900 employees in gaming division, including recently acquired Call of Duty maker Activision

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Microsoft has laid off 1,900 employees at Activision Blizzard and Xbox this week, it said Thursday, the latest cuts in the technology sector that has followed massive layoffs in past years, extending through 2024.

The cuts represent about 8 percent of the overall Microsoft gaming division and will mostly be at Activision Blizzard.

Microsoft said Blizzard president Mike Ybarra and chief design officer Alan Adham are also leaving the company, while a previously announced survival game by Blizzard has been canceled.

The news comes months after Microsoft closed a $69 billion (roughly Rs. 5,73,621 crores) deal for Activision Blizzard to create its best-selling titles, including Call of Duty, to better compete with industry leader Sony. Has increased its lead in the videogaming market with.

The Communications Workers of America (CWA) said, “Microsoft's announcement that it will lay off 1,900 video game employees makes it clear that, even if you work at a successful company in a highly profitable industry, your livelihood not secure.” ) Said.

It added, “We will continue to support workers at Microsoft and in the video game industry who want a union voice on the job.”

Several other big companies like Alphabet, Amazon.com and eBay have also laid off thousands of workers in recent weeks to cut costs and boost profitability.

In total, more than 21,000 workers were laid off at 76 tech companies in January, according to the tracking website Layoffs.fyi.

The tech sector is projected to shed 168,032 jobs in 2023 and have the most layoffs among industries, according to a report from Challenger, Gray & Christmas earlier this month. This includes more than 10,000 cuts at Microsoft.

Analysts and industry experts have said they expect fewer layoffs this year, adding that companies racing to catch up in the AI ​​sector may cut their size to offset the billions of dollars they are spending on the technology.

The Verge was the first to report news on the latest job cuts by Microsoft.

© Thomson Reuters 2024


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