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Microsoft lays-off 1900 staff across gaming division

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Microsoft Corporation is set to lay off approximately 1,900 employees in its video-game divisions, including those at recently acquired Activision Blizzard.

The news came through an email to staff from Microsoft gaming chief Phil Spencer, stating that the cuts amount to about 8% of the company’s 22,000 gaming workers.

The layoffs are part of Microsoft’s strategy following its $69 billion deal for Activision Blizzard in October, aimed at strengthening its position in the video gaming market and competing more effectively with industry leader Sony.

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Similar mass layoffs have been observed in other video game companies, including Riot Games.

Expressing empathy for those affected, Blizzard’s President, Mike Ybarra, who was impacted by the exercise, said, “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.”

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In a message shared on X to announce his exit from the company, Ybarra thanked the impacted individuals for their meaningful contributions and reassured them that his energy and support would be focused on them.

This move adds to the broader trend in the tech industry, with over 60 companies, including Amazon.com Inc. and Google’s parent Alphabet Inc., having laid off nearly 11,000 employees this year, according to Layoffs.fyi, a platform tracking tech industry job cuts.

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Last week, Google’s CEO, Sundar Pichai, warned employees to brace for more job cuts as part of the company’s ongoing cost-cutting measures.

Pichai explained that the layoffs were aimed at simplifying execution and driving velocity in certain areas, confirming that more “role eliminations” are anticipated.

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