Microsoft is laying off a colossal number of employees from its gaming division. 1,900 people — that's about 8% of the entire Microsoft Gaming division.

However, at the same time, Xbox head Phil Spencer promises sustainable development and high-quality gaming content in the future. The layoffs will mostly affect Activision Blizzard employees. In a message to the workers, Spencer called the decision to lay off staff painful. He also thanked the employees for their contributions.

MicrosoftImage credit:

In a message to employees, Xbox boss Phil Spencer stated that Microsoft will provide full support to those affected by the layoffs during the transition period, including severance packages in accordance with local employment laws.

The layoffs come after the $69 billion acquisition of Call of Duty owner Activision Blizzard.

The reductions occurred following a recent showcase event where Xbox presented a series of upcoming exclusive games.

Phil Spencer MicrosoftImage credit:

The broader context of these layoffs is a worrying trend of job cuts in the gaming market. Just last year, the industry saw massive layoffs of thousands of jobs, and similar cuts are expected in 2024. This indicates more global changes in the industry as companies revise their strategies in the rapidly evolving market.

Main image by ensiplay