Activision Blizzard, the renowned video game company, is set to lay off hundreds of employees at its Irvine and Santa Monica locations starting next month. This decision comes as parent company Microsoft Corp. aims to streamline operations and reduce costs in its gaming division.
On September 12, Activision Blizzard notified around 400 employees about the impending layoffs. By the end of the year, the company plans to cut:
Additionally, layoffs at the Playa Vista location will commence in November, with a total of 143 employees expected to be let go by year-end.
These layoffs are part of Microsoft's strategic move following its acquisition of Activision Blizzard, which was finalized last year after extensive scrutiny from antitrust regulators. The $69 billion deal marked a significant milestone in the gaming industry, being the largest acquisition in video game history.
In an email to staff, Phil Spencer, CEO of Microsoft Gaming, explained that the layoffs are necessary for aligning the post-acquisition team structure and managing business operations effectively. He emphasized that the affected positions are largely in corporate and supporting functions, reflecting a shift in the company's operational focus.
The layoffs are expected to impact various departments, particularly those involved in:
As the company navigates these changes, affected employees will likely face challenges in finding new opportunities within the competitive gaming industry.
The upcoming layoffs at Activision Blizzard highlight the ongoing adjustments within the gaming sector as companies adapt to new ownership structures and market demands. As Microsoft continues to refine its gaming division, the focus will be on creating a more efficient and streamlined operation, albeit at the cost of hundreds of jobs in Southern California.
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