Microsoft has announced that it will lay off 1,900 people from its gaming division as it looks to reduce costs after acquiring Activision Blizzard in January.
The announcement was made in a memo to employees, which was first reported by The Verge. The move is part of an effort to “find a sustainable cost structure” for the gaming business, which currently employs 22,000 people.
“Together, we’ve set priorities, identified areas of overlap, and ensured that we’re all aligned on the best opportunities for growth,” said Phil Spencer, head of Microsoft’s gaming division.
The layoffs come as a wave of staff cuts at major technology companies in recent months. Microsoft’s acquisition of Activision Blizzard was approved in January, making it the third-largest gaming company in the world by revenue.
The deal was initially blocked by regulators in the US but was eventually approved with conditions that it would not harm competition in the fast-growing cloud gaming sector.
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Mike Ybarra, president of Activision Blizzard, also announced that he was leaving the company.
“It’s an incredibly hard day and my energy and support will be focused on all those amazing individuals impacted,” Ybarra said on X, a former Twitter account.
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