Microsoft announced on Thursday that it will be laying off 1,900 employees at Activision Blizzard and Xbox this week. These layoffs are the latest in a series of job cuts in the technology sector, which have been occurring since 2024.
The layoffs represent approximately 8% of Microsoft’s Gaming division and will primarily impact Activision Blizzard. Blizzard President Mike Ybarra and Director of Design Allen Adham will also be leaving the company. Additionally, Microsoft announced the cancellation of Blizzard’s previously announced survival game.
These developments come a few months after Microsoft completed a $69 billion acquisition, which aimed to strengthen its presence in the video game market and better compete with industry leader Sony, including popular titles like “Call of Duty.”
“The news of Microsoft’s restructuring, coupled with the layoffs of 1,900 video game industry workers, demonstrates that even when working for a thriving company in a highly profitable sector, your livelihood is not safeguarded without a voice in the workplace,” said the Communications Workers of America (CWA) union. “We will continue to support Microsoft employees and the entire video game industry who wish to have their unions.”
In recent weeks, several other major companies, such as Alphabet, Amazon.com, and eBay, have also laid off thousands of employees to cut costs and increase profitability. Overall, in January alone, 76 technology companies laid off over 21,000 workers, according to the website Layoffs.fyi. The technology sector lost 168,032 jobs in 2023, making it the industry with the highest number of layoffs across all sectors, according to a report by Challenger, Gray and Christmas earlier this month, including over 10,000 job cuts at Microsoft.
Analysts and industry experts predict fewer layoffs this year, with companies focusing on artificial intelligence being more inclined to reduce staff in order to balance the billions of dollars they spend on technology. The first wave of Microsoft employee layoffs was reported by The Verge.
FAQ:
1. Which companies will be affected by the layoffs mentioned in the article?
A: The layoffs will affect employees at Activision Blizzard and Xbox, primarily at Activision Blizzard.
2. What is the total employment in Microsoft’s Gaming division?
A: The layoffs represent approximately 8% of Microsoft’s Gaming division.
3. Who is leaving Activision Blizzard due to the layoffs?
A: Blizzard President Mike Ybarra and Director of Design Allen Adham will also be leaving the company.
4. What changes were announced as part of the restructuring?
A: Microsoft has canceled the previously announced survival game by Blizzard.
5. How long have significant layoffs been accumulating in the technology sector?
A: The accumulated layoffs date back to 2024.
6. Which other major companies have recently laid off employees?
A: Several other major companies, such as Alphabet, Amazon.com, and eBay, have also laid off thousands of employees to cut costs and increase profitability.
7. Did the technology sector experience the highest number of layoffs across all industries?
A: Yes, according to a report by Challenger, Gray and Christmas, the technology sector had the highest number of job losses across all industries, including over 10,000 layoffs at Microsoft.
8. What are the expectations of analysts and experts regarding layoffs this year?
A: It is expected that there will be fewer layoffs this year, especially in companies focusing on artificial intelligence.
Definitions:
1. Microsoft Gaming – A division of Microsoft responsible for the development and publishing of video games.
2. Activision Blizzard – An American company that produces and publishes video games, which is now a part of Microsoft.
3. Bestsellers – Products that sell exceptionally well.
4. Restructuring – The process of making changes to an organization to improve its efficiency.
5. Survival game – A video game in which the player must survive in challenging environmental conditions and overcome various challenges.
Links:
– Microsoft.com – Official website of Microsoft.
– ActivisionBlizzard.com – Official website of Activision Blizzard.
The source of the article is from the blog kunsthuisoaleer.nl