Microsoft Gaming lays off 1,900 staff as Blizzard Entertainment president Mike Ybarra and chief design officer Allen Adham depart

Microsoft has laid off 1,900 employees from its gaming division—mainly roles at Activision Blizzard King, but also some at Xbox and ZeniMax Media.

With a total of 22,000 employees, the reduction accounts for eight percent of Microsoft Gaming’s workforce.

“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,” Microsoft Gaming CEO said in an internal memo obtained by The Verge. “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.”

Alongside the layoffs, Blizzard Entertainment president Mike Ybarra, and co-founder and chief design officer Allen Adham have both announced their decisions to leave the company.

In a message, Ybarra said “Having already spent 20-plus years at Microsoft and with the acquisition of Activision Blizzard behind us, it’s time for me to (once again) become Blizzard’s biggest fan from the outside.”

In an internal memo, Microsoft Gaming Content and Studios president Matt Booty said, “As many of you know, Mike previously spent more than 20 years at Microsoft. Now that he has seen the acquisition through as Blizzard’s president, he has decided to leave the company.”

On Adham’s departure, Booty added, “As one of Blizzard’s cofounders, Allen has had a broad impact on all of Blizzard’s games. His influence will be felt for years to come, both directly and indirectly as Allen plans to continue mentoring young designers across the industry.”

Blizzard Entertainment’s unannounced survival game has also been cancelled. According to Booty, Blizzard Entertainment will be “shifting some of the people working on it to one of several promising new projects Blizzard has in the early stages of development.”

Get the internal memo from Microsoft Gaming CEO Phil Spencer and message from Mike Ybarra below.

Internal Memo from Microsoft Gaming CEO Phil Spencer

“It’s been a little over three months since the Activision, Blizzard, and King teams joined Microsoft. As we move forward in 2024, the leadership of Microsoft Gaming and Activision Blizzard is committed to aligning on a strategy and an execution plan with a sustainable cost structure that will support the whole of our growing business. Together, we’ve set priorities, identified areas of overlap, and ensured that we’re all aligned on the best opportunities for growth.

“As part of this process, 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. 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.

“Looking ahead, we’ll continue to invest in areas that will grow our business and support our strategy of bringing more games to more players around the world. Although this is a difficult moment for our team, I’m as confident as ever in your ability to create and nurture the games, stories and worlds that bring players together.”

—Phil

Message from Blizzard Entertainment President Mike Ybarra

“I want to thank everyone who is impacted today for their meaningful contributions to their teams, to Blizzard, and to players’ lives. It’s an incredibly hard day and my energy and support will be focused on all those amazing individuals impacted—this is in no way a reflection on your amazing work. If there’s anything I can help with, connections, recommendations, etc., DM me.

“To the Blizzard community: I also want to let you all know today is my last day at Blizzard. Leading Blizzard through an incredible time and being part of the team, shaping it for the future ahead, was an absolute honor. Having already spent 20-plus years at Microsoft and with the acquisition of Activision Blizzard behind us, it’s time for me to (once again) become Blizzard’s biggest fan from the outside.

“To the incredible teams at Blizzard—thank you. Words can’t express how I feel about all of you. You are amazing. Continue to do incredible things and always keep Blizzard blue and the player at the forefront of every decision.

“To all of those impacted today—I am always available to you and understand how challenging today’s news is. My heart is with each one of you.”