Update, 2:50 p.m. ET/ 1/25/24:
The Verge obtained the full internal memo sent to staff by Microsoft's game content and studios president, Matt Booty. In it, he says, following today's layoffs, the company is moving forward with a more focused strategy across Microsoft Gaming that sets it up for sustainable growth and a better alignment of talent. Booty also addresses Blizzard president Mike Ybarra's departure, and the cancelation of its in-development survival game project. He says Blizzard's next president will be announced next week.
You can read the memo, in full, below:
"Blizzard team,
As you may have read in Phil's note, today is a challenging day as we say goodbye to some of our colleagues. This is a difficult process, but it is one that will best enable Blizzard and Xbox to deliver ambitious games for our players on more platforms and in more places than ever before. We are moving forward with a more focused strategy across Microsoft Gaming that sets us up for sustainable growth and aligns our talent and resources to our top priorities.
"In addition to the events today, Mike Ybarra and I have been discussing his future and some of his personal passions for some time. 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. As we move forward, we will continue to build on the positive momentum that Mike created and strive to continue exceeding the expectations of Blizzard's players. I want to thank Mike for his leadership and for his partnership and counsel since the deal closed. I know he plans to travel and spend more time with his family. We wish him the very best.
"Additionally, Allen Adham, Blizzard's Chief Design Officer, is leaving the company. 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.
"The new Blizzard President will be announced next week.
"What Happens Next
"Those who are impacted are being informed in meetings starting today. Given the challenging day ahead, anyone who is set up to work from home and would prefer to, can work remotely today. Due to time zones and local holidays, some impacted employees in APAC and EMEA will be informed later this evening and into early next week. After the notifications are complete, leaders will bring their teams together. Please be mindful of this process in your conversations and outreach during these next few days.
"Details on Today’s Actions
"The changes announced today reflect a focus on products and strategies that hold the most promise for Blizzard's future growth, as well as identified areas of overlap across Blizzard and Microsoft Gaming. Today's actions affect multiple teams within Blizzard, including development teams, shared service organizations and corporate functions. As part of this focus, Blizzard is ending development on its survival game project and 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.
"No matter the reason behind these decisions, they are never made lightly. Changes like these affect the lives of colleagues and friends, and we are all grateful for their meaningful contributions to Blizzard and its world-class lineup of games. As Phil stated, we will provide our full support to those who are impacted during the transition, including severance benefits informed by local employment laws.
"I understand that this is a challenging time and that it can be a lot to process. I haven't met many of you yet, and hearing about these decisions from me may be difficult. Today, I am here on Blizzard's Irvine campus, and I am personally committed to supporting you as teams and individuals, keeping you informed, and approaching this transition period with care and transparency.
"Thank you for working through these changes with us. Together we will continue to create amazing games for our players, with a culture that empowers everyone to be their most authentic selves and do their best work."
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Update, 9:51 a.m. ET, 1/25/24:
Blizzard president Mike Ybarra has announced he is departing from the company; he was not laid off as part of Microsoft's 1,900 job cuts across its various gaming divisions, but the timing suggests the layoffs and his decision to leave are at least tangentially related. Here's what Ybarra wrote on Twitter:
"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+ 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."
Ybarra has worked at Blizzard since 2019, first as executive vice president and general manager of platform and technology before becoming president of the company in 2021. Before that, he worked for Microsoft for more than 19 years in various positions like corporate vice president of Xbox Live and Game Pass and partner studio manager for Xbox Studios.
Bloomberg reporter Jason Schreier is also reporting that Allen Adham, chief design officer and Blizzard founder is leaving the company following these layoffs, and that Odyssey, the studio's in-development survival game, has been canceled.
Other Blizzard news:
— Jason Schreier (@jasonschreier) January 25, 2024
- Allen Adham, chief design officer and the company's founder, is leaving the company
- Odyssey, the survival game that has been in development for 6+ years, is canceled
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Original story, 9:43 a.m. ET, 1/25/24:
Microsoft is laying off roughly 1,900 employees across its Xbox, Activision Blizzard, and ZeniMax teams. This news comes by way of IGN, which has learned from sources that Microsoft Gaming CEO Phil Spencer sent a memo to staff explaining the layoffs.
Spencer cites the need to align strategy with a sustainable cost structure. Notably, Microsoft spent $69 billion in October to acquire Call of Duty and Overwatch maker Activision Blizzard, and it spent $7.5 billion in 2020 to acquire ZeniMax Media.
Here's Spencer's memo to staff in full, from IGN: