After acquiring Activision Blizzard for IDR 1.092 trillion, Microsoft lays off 1,900 employees from its gaming division

MidLand, Jakarta – Microsoft terminate employment relationships or Layoffs to its 1,900 employees in the gaming division. These layoffs are also the impact of Microsoft’s acquisition of a gaming company, Activision Blizzard.

Quoted from Gizmochina On Friday, January 26, 2024, Microsoft announced layoffs to significantly reduce its gaming department workforce. Microsoft admitted that the layoffs were a difficult decision for the company, but they had to be made.

Microsoft representative who is also the head of Xbox, Phil Spencer, said that employees affected by the layoffs will be given full support, including severance pay. Microsoft did this as a form of accountability to its former employees.

Microsoft’s gaming division layoffs are also part of its acquisition of gaming company Activision Blizzard. The value of this acquisition was recorded at $69 billion (Rs. 1,092 trillion). Microsoft believes the acquisition will bring innovation to popular games like Call of Duty.

This acquisition is also one of the largest in the gaming industry, so Microsoft needs to align its strategy and review the cost structure needed to expand its business. Spencer explained that integrating the Activision, Blizzard and King teams into Microsoft required a reevaluation of priorities and elimination of areas of overlap.

Announcement

“The decision to downsize must be made as a strategy towards change, even if it is difficult. This is a strategic form towards sustainable growth,” Spencer said.

Even though Microsoft has laid off employees from its gaming division, the company continues to show hope that it can compete in the technology realm game. Recently, Microsoft showed off a number of new games made. This also indicates that Microsoft remains committed to providing a quality gaming experience.

The layoffs at Microsoft also bring a scary trend for the gaming industry for next year, because layoffs are still a plague on this industry. Last year alone, thousands of workers faced layoffs in the gaming industry, and this will continue until 2024.

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