Massive Layoffs at Microsoft Gaming: Departure of Mike Ybarra and Allen Adham

Earlier this morning, news broke that Microsoft Gaming is undergoing significant changes. According to reports from various sources, including The Verge, Microsoft is set to lay off approximately 1,900 employees from Activision Blizzard and Xbox. This reduction represents around 8% of Microsoft Gaming's total workforce of 22,000 employees. The decision comes as Microsoft Gaming and Activision Blizzard aim to align on a strategy and cost structure that will support their growing business for the future.

Phil Spencer's Vision for Microsoft Gaming

As Phil Spencer, the head of Microsoft Gaming and Activision Blizzard stated, "As we move forward in 2024, the leadership of Microsoft Gaming and Activision Blizzard is committed to aligning on a strategy and an execution plan with a sustainable cost structure that will support the whole of our growing business. Together, we’ve set priorities, identified areas of overlap, and ensured that we’re all aligned on the best opportunities for growth."

The decision to reduce the gaming workforce was undoubtedly a difficult one. Spencer acknowledges the vital contributions of the individuals affected by these layoffs, emphasizing their roles in the success of Activision Blizzard, ZeniMax, and the Xbox teams. He expresses gratitude for their creativity, passion, and dedication, both to the games and to their colleagues. Microsoft promises to provide full support to those impacted, including severance benefits in accordance with local employment laws. The company urges others to treat their departing colleagues with respect and compassion.

Despite this challenging period, Microsoft Gaming remains committed to investing in areas that will drive future growth and help bring more games to players around the world. Spencer concludes his statement, saying, "Looking ahead, we’ll continue to invest in areas that will grow our business and support our strategy of bringing more games to more players around the world. Although this is a difficult moment for our team, I’m as confident as ever in your ability to create and nurture the games, stories, and worlds that bring players together."

Changes in Leadership

• Mike Ybarra Bids Farewell

Alongside the announcement of the layoffs, President of Blizzard Entertainment, Mike Ybarra, also known as Qwik, revealed on Twitter and Linkedin that today would be his last day at Blizzard Entertainment. Ybarra, an industry veteran with 22 years of experience at Microsoft, joined Blizzard in October 2019 and worked his way up to become president in February 2022.

Ybarra expressed his gratitude, stating, "It was great to be part of the team that built Blizzard and ATVI over the years. I've decided to transition out now that it's merging with MSFT and happy to have helped that succeed. I'll be taking time out for a bit to spend time with family and travel the world. Afterwards, I will look for hyper-growth opportunities with great teams."

• Allen Adham's Departure

In addition to Ybarra's exit, Senior Vice President Allen Adham, one of the original co-founders of Blizzard Entertainment back in 1991, will also be departing the company. Adham had previously left in 2004 and returned in 2016, regaining his spot as part of the company's leadership team in 2018. Adham served as an executive producer during his time at Blizzard.

Matt Booty, the President of Microsoft Game Content and Studios, clarified that Ybarra and Adham made the decision to leave Blizzard on their own terms and were not part of the layoffs. Microsoft plans to announce a new Blizzard president next week. The precise number of Activision Blizzard employees affected by the layoffs has not been released yet.

We extend our best wishes to both Ybarra and Adham, as well as to all the employees affected by the recent restructuring at Microsoft Gaming. These are undoubtedly challenging times, but we hope everyone finds solace and new opportunities as they navigate these changes.

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