Microsoft’s Activision Blizzard Cuts Nearly 400 Jobs As Corporate Reshuffling Continues

Microsoft’s gaming division, specifically Activision Blizzard, is once again in the layoff spotlight, with around 400 employees facing the axe. Following a memo from Xbox boss Phil Spencer, it was confirmed that the cuts would hit Blizzard Entertainment hard, with roles across California locations—such as Irvine, Santa Monica, and Playa Vista—being targeted. These layoffs are primarily hitting “corporate and supporting roles,” including accountants, software engineers, and game producers, as per Blizzard spokesperson Delay Simmons.

This isn’t the first time Activision Blizzard has seen mass layoffs. Since Microsoft acquired the publisher in a multi-billion-dollar deal, layoffs have been a common strategy to “reduce redundancies.” The timing, however, raises eyebrows—Microsoft continues to hand cash back to shareholders, making the layoffs feel more like a corporate maneuver than a necessary trim.

For those keeping score, Microsoft has laid off over 2,000 gaming division staff in 2024 alone. It's becoming a rather grim pattern for a company that once touted its commitment to gaming and the people who build the experiences. It’s left many wondering about the long-term health of Blizzard’s iconic franchises like World of Warcraft and Overwatch. With key talent being lost in multiple departments, it could potentially affecte future projects, game updates, and overall team morale.

It’s not just Microsoft. The broader video game industry has seen massive layoffs over the last few years, with giants like Electronic Arts, Sony Interactive Entertainment, Unity, and even Epic Games trimming their workforce. Industry veterans attribute these layoffs to the industry's post-pandemic adjustment, economic downturns, and increased pressure to deliver on massive projects with tighter budgets. According to Polygon, the number of lay offs this year has far exceeded that of 2023 and any other year before that.

As Microsoft and other video game companies look to reduce costs and further streamline their operations, fans and developers alike are left to wonder what these cuts will mean for the future of beloved franchises—and for the broader gaming landscape.