Microsoft Cuts 1,900 Jobs in Gaming Division Three Months After Activision Blizzard Acquisition

by | Jan 25, 2024 | Aggregate

Microsoft has announced a significant reduction in its workforce, laying off approximately 1,900 employees in its gaming division. This move comes just over three months after the tech giant’s $69 million acquisition of video game maker Activision Blizzard.

The internal company memo, obtained by The Associated Press on Thursday, reveals that the job cuts amount to an 8% reduction of Microsoft’s 22,000-person gaming workforce. Impacted employees were from various teams including Activision Blizzard, Xbox, and ZeniMax — all under Microsoft’s umbrella.

Phil Spencer, CEO of Microsoft Gaming, commented in the memo, “As we move forward in 2024, we are committed to aligning on a strategy and execution plan with a sustainable cost structure to support our growing business.”

Blizzard President Mike Ybarra also announced his departure from the company on Thursday on X. In his post, Ybarra expressed support for the impacted employees.

“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.”

AP reported:

Microsoft closed its $69 billion Activision Blizzard deal in October, nearly 22 months after the deal was first announced after overcoming opposition from antitrust regulators in the United Kingdom and European Union.

The U.S. Federal Trade Commission lost a court fight to block the acquisition but its antitrust enforcers are still pursuing a case that seeks to unwind the deal. The FTC has described the merger as a threat to competition in the video game industry, enabling Microsoft to create “walled gardens” around its Xbox Game Pass subscription service and the emerging business of streaming games on demand.

The latest layoffs at Microsoft follow a chain of job cuts across the tech sector in recent weeks — including those at Google, Riot Games, TikTok, eBay and Amazon. Retail, hospitality, media and other sectors have been it by job cuts as well.

The latest Microsoft layoffs “underscores the importance of having a union voice on the job,” said the Communications Workers of America — which has been working to organize video game employees, including some at gaming divisions at Microsoft.

In an unusual arrangement for the gaming industry, Microsoft has pledged to stay neutral if Activision Blizzard workers in the U.S. and Canada seek to organize into a labor union. The union deal was part of a 2022 agreement with the CWA that helped address U.S. political concerns about the merger’s effects. So far, however, only a small set of Activision Blizzard divisions have formed unions.

In January 2023, Microsoft announced a reduction of 10,000 workers, nearly 5% of its workforce at the time.

Satya Nadella, CEO of Microsoft, announced in a memo to employees that the company will begin laying off “less than 5 percent of our total employee base” by the end of the company’s fiscal third quarter, which ends in March.

“Today, we are making changes that will result in the reduction of our overall workforce by 10,000 jobs through the end of FY23 Q3,” said Nadella.

“This represents less than 5 percent of our total employee base, with some notifications happening today. It’s important to note that while we are eliminating roles in some areas, we will continue to hire in key strategic areas. We know this is a challenging time for each person impacted. The senior leadership team and I are committed that as we go through this process, we will do so in the most thoughtful and transparent way possible,” he continued.

“I want to extend my deepest thanks and gratitude to everyone who has contributed to Microsoft up to this point and to all of you who will continue to contribute as we chart our path ahead. Thank you for the focus, dedication, and resilience you demonstrate for Microsoft and our customers and partners each day,” he concluded.

Microsoft to Layoff 10,000 Employees as Part of a Massive Cost-Cutting Initiative

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Hungarian PM Orbán Supports Sweden’s Membership in NATO, After Turkish Parliament Votes To Ratify It

by | Jan 25, 2024 | Aggregate

Another week, another Orbán veto driving Globalists crazy.

This time, it seems that Hungarian Prime Minister Viktor Orbán is finally on board with Sweden’s bid for NATO membership.

Orbán told NATO secretary general Jens Stoltenberg, in a phone call, that he and his Hungarian government support Sweden’s membership of the military alliance.

Just finished a phone call with @NATO Secretary General @jensstoltenberg. I reaffirmed that the Hungarian government supports the NATO-membership of #Sweden. I also stressed that we will continue to urge the Hungarian National Assembly to vote in favor of Sweden’s accession and…

— Orbán Viktor (@PM_ViktorOrban) January 24, 2024

Reuters reported:

“Orbán added that he also told Stoltenberg that he will continue to urge the Hungarian national assembly to vote in favour of Sweden’s accession to NATO and conclude the ratification at the first possible opportunity.

Stoltenberg said after the call that Orbán and his government clearly supported Sweden’s NATO membership.

‘I look forward to the ratification as soon as parliament reconvenes’,” Stoltenberg said on X.”

This move by Orbán comes after Turkish parliament approved Sweden’s membership bid on Tuesday (23), thereby putting the spotlight on Hungary as the only NATO member yet to ratify the accession.

Admission into the Alliance requires unanimity among all member countries.

It has been more than a year for Budapest and Ankara to agree to Stockholm’s ascension, frustrating other allies.

But while the Prime Minister has finally given his ok, not all problems are necessarily dealt with in Hungary.

Associated Press reported:

“Last month, the Turkish parliament’s foreign affairs committee approved Sweden’s accession protocol, moving the Nordic country one step closer to joining the alliance. Turkish President Recep Tayyip Erdogan lifted his opposition to Sweden’s membership last year in response to efforts by Stockholm to tackle supporters of Kurdish militants and other groups in Sweden that Ankara views as security threats.

[…] While Orbán says his government supports Sweden’s admission into the alliance, he claims that lawmakers from his governing Fidesz party remain unconvinced because of what he called ‘blatant lies’ by Swedish politicians about the condition of Hungary’s democracy.”

Once Sweden and Finland abandoned their long-held neutrality, they faced rather different paths to NATO, with the Scandinavian nation having to negotiate for an extra year.

Finland became NATO’s 31st member last year, and as in Sweden’s case, Hungary and Turkey were the last two countries to ratify its bid.

Hungary’s parliament is scheduled to assemble on Feb. 26.

Read more:

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