Microsoft will lay off about 2,000 employees from video game projects

Microsoft, whose market value recently surpassed $3 trillion for the first time, has announced plans to reduce its workforce in the Microsoft Gaming division by 1,900 employees. News of the new wave of layoffs at Microsoft came from an address to employees by Phil Spencer, the CEO of Microsoft Gaming, which has already garnered media attention (the company had laid off 10,000 employees in January this year).

The reductions will constitute 8% of the total Microsoft Gaming staff, which numbers around 22,000 employees. The layoffs will primarily affect the acquired Activision Blizzard division, purchased by Microsoft for $68.7 billion, but will also impact Xbox and ZeniMax (Bethesda).

It has also been revealed that Blizzard Entertainment's President, Mike Ybarra, and co-founder Allen Adham are leaving the company, and an unnamed survival simulator set in a new universe is being canceled.

According to Spencer, the layoffs were a painful necessity as part of Microsoft Gaming and Activision Blizzard's efforts to implement a viable cost structure that "will support our growing business." Spencer promised full support, including "severance pay in accordance with local labor laws," for the affected employees.

Microsoft stated that it will continue to invest in areas that contribute to the growth of its business and align with the strategy of providing more games to a larger number of gamers worldwide.