Activision Blizzard Layoffs: Hundreds Affected in Irvine & Santa Monica

3 October 2024 at 05:00 in Gaming News with no comments

Microsoft’s new layoffs hit once again Activision Blizzard for 650 people

It seems that Microsoft’s 2024 layoffs are not over yet. In fact, Activision Blizzard has once again been hit by staff cuts, losing as many as 400 people between its Irvine and Santa Monica studios. As part of the restructuring plan after the acquisition of Activision Blizzard in 2023 by Microsoft.

Activision Blizzard Layoffs: Hundreds Affected in Irvine & Santa Monica

Microsoft’s new Activision Blizzard cuts: The news of the second wave

The news of the layoffs was announced by Game File on 13 September 2024, in an internal email from Phil Spencer, CEO of Microsoft Gaming, directed to employees. In said email, he “glosses over” what would be another cut of about 650 (3%) employees within Microsoft Gaming. A cut that was recently confirmed with the loss of about 400 positions across various Activision Blizzard studios.

In particular, the following studios will be affected:

  • Irvine Studio: With a cut of 140 employees by December.
  • Santa Monica HQ: With a cut of 110 positions by the end of the year.
  • Playa Vista Office: With a cut of 143 employees starting in November.

In the email, Phil attributes the cuts to the IT, Human Resources, and Recruitment departments. This is part of the strategy that Microsoft had already announced at the beginning of 2024. However, this is certainly not the first cut Activision Blizzard has seen since the finalization of the acquisition by Microsoft.

Activision Blizzard Santa Monica Headquarters


Microsoft massive layoffs wave across 2024

As 2024 slowly comes to a close, we have seen numerous staff cuts in the gaming industry. Deep cuts that have mostly seen Microsoft at the forefront, both with large cuts to the IT and Gaming departments. Cuts that were certainly expected with the expensive acquisition of Activision Blizzard on 13th October 2023, for $69 billion. And an announcement at the start of 2024 that projected an 8% cut in Microsoft Gaming’s workforce for 2024.

But there were also highly controversial decisions, such as the closure of Tango Gameworks (from Zenimax) back in May. This followed the departure of Shinji Mikami, who found the new climate under Microsoft too restrictive. Tango Gameworks, which delivered the much-loved Hi-Fi Rush at the beginning of 2023, didn’t meet Redmond’s sales expectations. The studio was then “saved” through an agreement with Krafton. As well as the closure of Arkane Austin, also in May, after the flop of Redfall.


Activision Blizzard: The most affected by Microsoft’s cuts in 2024

Phil Spencer announced in late January 2024 that the entire Microsoft Gaming division would see a cut of about 1,900 jobs throughout 2024. This would amount to approximately 8% of the workforce, with a first major cut of nearly 900 employees at the end of March, followed by the recent 650, and more expected by the end of 2024. Activision Blizzard being affected the most throughout 2024.

This comes amidst several issues starting from Microsoft’s acquisition process. In November 2023, there was the announcement of a return to the office after a period of hybrid or remote work. Employees were expected to return to the office five days a week, causing significant discomfort for many and being accompanied by layoffs for those unable to comply with the decision. The first wave of layoffs hit in March.

In short, Microsoft Gaming’s growth strategy for 2024 has seen numerous job cuts that the giant views as “redundant”. We have also seen with Tango Gameworks how Microsoft operates with products that don’t sell within expectations. In short, 2024 has been marked by layoffs and losses and not just by major gaming successes. We’ll have to see what the end of 2025 holds and whether Phil Spencer’s strategy for 2025 includes further job cuts.


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