Microsoft has opened a new tab and will lay off 1,900 people at Activision Blizzard and Xbox this week, the latest cuts in the technology sector that has extended significant layoffs until 2024.
Lay off 1,900 People
The cuts will mostly affect Activision Blizzard, accounting for approximately 8% of the overall Microsoft Gaming division.
Blizzard President Mike Ybarra and Chief Design Officer Allen Adham are also departing the firm, and a previously promised survival game from Blizzard has been cancelled, Microsoft stated.
$69 billion Acquisition of Activision Blizzard
The announcement comes months after Microsoft completed its $69 billion acquisition of Activision Blizzard, bolstering its position in the videogame market with best-selling titles such as “Call of Duty” to better compete with industry leader Sony.
“Microsoft’s announcement that it will be laying off 1,900 video game workers makes clear that, even when you work at a successful company in an extremely profitable industry, your livelihood is not protected without a voice on the job,” Communications Workers of America (CWA) said.
“We will continue to support workers at Microsoft and across the video game industry who want to have a union voice on the job,” it added.
Several other major corporations, like Alphabet, Amazon.com, and eBay, have also let off thousands of employees in recent weeks to reduce costs and increase profitability.
According to a forecast released earlier this month by Challenger, Grey, and Christmas, the IT sector will shed 168,032 jobs in 2023, accounting for the biggest amount of layoffs across industries. This included more than 10,000 layoffs at Microsoft.
Analysts and industry experts predict fewer layoffs this year, with companies racing to catch up in the AI field more likely to reduce to counterbalance the billions of dollars they are investing in the technology.
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