More Details For Recent Microsoft Layoffs Reveals Team Overwatch 2 And Diablo 4 Got Struck The Hardest

The gaming industry has changed drastically in the past decade and it’s not a secret that it is not in its best state right now. This year Microsoft has gotten rid of a large chunk of its employees and they are continuing to do so as Activision Blizzard will start laying off employees at its Irvine, Santa Monica, and Playa Vista locations.

Roughly 400 employees working on Overwatch 2 and Diablo 4 have been laid off as a part of Microsoft’s new strategy to cut costs in its gaming division. Earlier this year, Microsoft got rid of roughly 1,900 employees who were a part of Activision Blizzard, ZeniMax, and the Xbox teams.

Microsoft Got Rid Of Employees Working On Overwatch 2 And Diablo 4

Microsoft’s plan to cut costs in its gaming division is in full swing as the industry giant plans to get rid of roughly 400 employees at Activision Blizzard who are working on Overwatch 2 and Diablo 4.

This round of layoffs will target employees working at Activision Blizzard’s Irvine, Santa Monica, and Playa Vista locations. By the end of the year, roughly 400 employees working at these locations will be jobless. This is a part of Microsoft’s plan to lay off approximately 650 employees, or 3% of Microsoft Gaming’s global workforce.

Overwatch 2 and Diablo 4 will obviously be affected by this move, in fact, Microsoft Gaming has also removed some employees working on Call of Duty: Warzone Mobile.

Phil Spencer Says These Layoffs Are Necessary To Organize Microsoft Gaming

Microsoft acquired Activision Blizzard for roughly $69 billion in October 2023, giving Microsoft access to many games developed by Activision Blizzard. Under their new plan, Activision Blizzard has been affected the most. In an email to an employee that was obtained by Variety earlier this month, Phil Spencer explained the reason behind these layoffs,

As part of aligning our post-acquisition team structure and managing our business, we have made the decision to eliminate approximately 650 roles across Microsoft Gaming – mostly corporate and supporting functions – to organize our business for long term success.

Microsoft has assured that no video game titles, devices, or “experiences” are being canceled because of these layoffs. Not just Microsoft, but even PlayStation got rid of 8% of its global workforce earlier this year.

In January 2024, Microsoft laid off 1,900 employees at Activision Blizzard and Xbox. Around the same time, Blizzard president Mike Ybarra revealed that he was also leaving the company. These sudden layoffs have worried the gaming community as these might be early signs that the industry is dying.

Do you think these layoffs are necessary to keep the company afloat? Share your views in the comments!