It has just been revealed that Microsoft is letting go of 1,900 employees spread across Activision Blizzard and Xbox. This news comes amid a wave of redundancies that is hitting the industry hard, with thousands of developers already suffering from lay-offs since 2024 began. There’s a tough year ahead, but for 1,900 Activision Blizzard and Xbox employess, those struggles start now.

In an internal memo obtained by The Verge, Phil Spencer and Xbox’s Matt Booty broke the news to employees. It was regarded as a ‘painful decision’ that came mere months after Microsoft acquired Activision Blizzard in a record-breaking buyout. There’s more to come from this story, though – including a high-level departure from Blizzard and the cancellation of a big game.

When It Rains…

Following the news that more than 1,900 employees will be laid off this week from AB and Xbox, it was revealed that Blizzard’s long-time President, Mike Ybarra, is stepping down. That’s effective immediately, as stressed by Ybarra in a post on Twitter, where he wrote:

‘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. ‘

But there’s more.

It was also revealed that an unnanounced survival game in development at Activision Blizzard has now been cancelled. Last year, news surfaced that a survival game – subject matter unknown – was being created by AB. Before it ever had a chance to see the light of day, it has been effectively shut down. It was revealed by Xbox’s Matt Booty that the employees working on this project will be relocated to other games within Activision Blizzard.

That’s likely a sizeable blow, given the popularity of survival games these days. For instance, Palworld, which was released little more than a week ago and has already sold more than eight million copies.

It’s dire news for sure, but it’s indicative of a struggling industry that needs time to right itself. It’s expected that this year will herald the closure of more studios and esports organisations, but there are also expectations that, given time, things will level out again.

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