Microsoft to lay off 1 900 game developers

It was predictable, but Microsoft is going to lay off 1 900 of its 22 000 game development employees. These are the consequences of the deal with Activision Blizzard, writes IGN.

In a message to employees reviewed by IGN, Xbox boss Phil Spencer wrote that Microsoft will provide “full support to those affected by the transition, including severance pay in accordance with local labor laws.”

These layoffs are a direct result of the $68.7 billion Microsoft-Activision Blizzard deal, which left the merged company with “redundant” employees performing similar functions.

“As part of this process, we have made the painful decision to reduce the size of our gaming workforce by approximately 1 900 roles out of the 22 000 people on our team. The Gaming Leadership Team and I are committed to navigating this process as thoughtfully as possible. The people who are directly impacted by these reductions have all played an important part in the success of Activision Blizzard, ZeniMax and the Xbox teams, and they should be proud of everything they’ve accomplished here. We are grateful for all of the creativity, passion and dedication they have brought to our games, our players and our colleagues. We will provide our full support to those who are impacted during the transition, including severance benefits informed by local employment laws. Those whose roles will be impacted will be notified, and we ask that you please treat your departing colleagues with the respect and compassion that is consistent with our values,” Phil Spencer wrote.

As a reminder, today Microsoft’s capitalization reached $3 trillion for the first time.