A company with a market capitalization of $300 million fires 1900 workers; Xbox is among the impacted teams

At least 1,900 workers at Xbox and the newly purchased game business Activision Blizzard are being let go by Microsoft.

Roughly 8% of the 22,000 workers in Microsoft’s gaming sector would be impacted by the layoffs.

In an internal message on Thursday, Microsoft Gaming CEO Phil Spencer said, “We have made the painful decision to reduce the size of our gaming workforce by approximately 1900 roles out of the 22,000 people on our team.”

“Those who are directly affected by these layoffs should be proud of all they’ve accomplished because they have contributed significantly to the success of Activision Blizzard, ZeniMax, and the Xbox teams,” he said.

It has been decided by Activision Blizzard President Mike Ybarra to quit the firm.

“I would want to express my gratitude to all those who have affected Blizzard, the players’ life, and their teams with their significant contributions. This is in no way a reflection on your incredible job; it’s just a very difficult day, and all of my support and energy will be directed toward all of the beautiful people affected,” Ybarra wrote on X.

“Now that we’ve acquired Activision Blizzard and spent more than 20 years at Microsoft, it’s time for me to (once again) become Blizzard’s biggest fan from the outside,” he said.

In October of last year, Microsoft successfully finalized the $68.7 billion purchase of Activision Blizzard, after a protracted legal struggle with US and UK authorities.

According to The Verge, the business reorganized its marketing and Xbox gaming leadership in the same month.