Microsoft is laying off 1900 people across its video game teams, including Activision Blizzard, ZeniMax and Xbox, equating to approximately eight percent of its gaming workforce.
In an internal email seen by The Verge, Microsoft's gaming head Phil Spencer called this a "painful decision".
"It's been a little over three months since the Activision, Blizzard, and King teams joined Microsoft," Spencer wrote in his email to staff. "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.