SEATTLE — About 1,900 employees are being laid off in Microsoft's gaming division, impacting roles at Activision Blizzard and Xbox, according to an internal memo obtained by the Associated Press.
Microsoft Gaming CEO Phil Spencer wrote in the memo that those "who are directly impacted by these reductions have all played an important part in the success of Activision Blizzard, ZeniMax and the Xbox teams."
The 1,900 employees being laid off make up 8% of the division's 22,000 workforce. It is still unknown how many roles in western Washington will be impacted but both Xbox and Activision have offices in Redmond.
Spencer said Microsoft "will provide full support" to those impacted and will receive severance benefits.
"We are grateful for all of the creativity, passion and dedication they have brought to our games, our players and our colleagues," Spencer said. "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."
Microsoft finalized its $69 billion purchase of Activision Blizzard in October after nearly two years of scrutiny from U.S. regulators. The historic acquisition puts Microsoft in the position to potentially dictate the future of the gaming industry.
The layoffs come months after other gaming giants Unity Technologies and Epic Games announced staff reductions in the Seattle area. Amazon's Twitch also recently announced it will lay off 500 positions to attempt to turn the popular streaming platform profitable.
Los Angeles-based Riot Games announced this week it is laying off 530 employees globally. Riot Games has a studio in Bellevue and is expected to open new offices on Mercer Island this year. It has not yet been announced how the layoffs will impact positions in western Washington.
According to an Entertainment Software Association study, the video game industry had a $11.6 billion economic impact in Washington state and employed over 48,800 people in 2019, the second largest in the nation.