Microsoft lays off 1,900 Xbox and Activision Blizzard employees

Even though it’s only the first month of 2024, thousands of video game industry workers have already lost their jobs. Now Microsoft is joining the depressing trend, planning to lay off 1,900 Activision Blizzard and Xbox employees this week. Despite being the second company to reach a $3 billion valuation.

Most of the layoffs, representing about 8% of Microsoft’s 22,000-person gaming unit, will come from Activision Blizzard, which the tech giant ultimately acquired for $69 billion after a lengthy battle with regulators three months ago.

Blizzard’s next survival game has reportedly been cancelled, and Blizzard President Mike Ibarraand senior design director Allen Adham are among the executives leaving the company.

But it appears that Blizzard still has other games in development, and those assigned to the canceled game will be transferred to other departments.

IN memo Xbox CEO Phil Spencer said Microsoft will provide laid-off employees with severance and other benefits in accordance with “local labor laws.” The company plans to “continue to invest in areas that will grow our business” but did not specify what some of those areas might be.

However, it’s worth noting that Xbox recently invested in Artificial Intelligence Game Development Toolkit late last year, which was heavily criticized by video game talent. fearing that such tools will lead to layoffs and a decrease in the quality of games. Microsoft’s push into AI gaming has also come under fire from the players themselves. And Blizzard is apparently experimenting with artificial intelligence to create characters for future games.

The national union group Communications Workers of America, which represents computer gaming workers at some Microsoft subsidiaries, called the layoffs a clear sign that “even when you work for a successful company in a hugely profitable industry, your livelihood is not secure without a voice.” at work,” he said.

Reuters.

“We will continue to support workers at Microsoft and across the video game industry who want a voice at work,” CWA added.

“Layoffs are becoming the norm in the video game industry, even at companies that still make huge profits,” said ZeniMax CWA member Wayne Dayberry. IGN.

While it’s unclear to what extent Microsoft’s love affair with AI has led to the latest wave of layoffs, the proliferation of generative AI tools has certainly led to growing concerns about an avalanche layoffs in 2023. Causation is difficult to prove in many cases, but the correlation worries many in the industry.

Riot Gamesanother major game studio, also laid off 530 employees this week, although it promised them benefits such as six months of severance pay to mitigate injuries.

Twitch, UnityDiscord and Pixelberry Studios Nexon is one of the video game companies that also cut staff this month. In accordance with KotakuNearly 6,000 video game industry workers have already lost their jobs this year.

Edited by Andrew Hayward