Microsoft Fires 1900 Employees, Reduces the Numbers in its Gaming Division

Microsoft Fires 1900 Employees, Reduces the Numbers in its Gaming Division

Microsoft has fired about a thousand nine hundred employees working in its gaming department just after securing a $69 billion video game maker, Activision Blizzard. 

According to the management, the 1900 job cut represents only 8% of the entire 22,000 gaming division population. Reports have revealed that the employees affected by this decision belong to the Activision Blizzard, Xbox, and ZeniMax teams. 

The news was communicated by the CEO of Microsoft Gaming, Phil Spencer who wrote in a memo "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."

In October, Microsoft successfully finalized its acquisition of Activision Blizzard, valued at $69 billion. This culmination occurred nearly 22 months after the initial announcement, overcoming challenges from antitrust regulators in the United Kingdom and the European Union.

Although the U.S. Federal Trade Commission (FTC) faced defeat in its attempt to block the acquisition through legal channels, its antitrust enforcers are persistently pursuing a case aiming to reverse the deal. The FTC contends that the merger poses a threat to competition within the video game industry, alleging that it empowers Microsoft to establish "walled gardens" around its Xbox Game Pass subscription service and the new sector of streaming the most wanted games. 

Microsoft conducted a huge layoff about a year ago, firing about 10,000 workers, and now it is joining a series of tech companies all over the world to perform another one. Amazon, Google, TikTok, eBay, and many others have pushed out a significant amount of employees this year and no one knows how bad it can still get. 

Different reports have recorded over 21000 jobs have gone off the line since the year 2024 began and this hasn't stopped the same tech companies from putting out job vacancies for positions that will be beneficial to their business. 

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