In a significant move, Microsoft is set to cut loose approximately 1,900 employees from Activision Blizzard and Xbox this week. This decision primarily affects roles within Activision Blizzard, but it will also have some impact on Xbox and ZeniMax staff members.

These layoffs equate to approximately 8 percent of Microsoft’s Gaming division, which boasts a total workforce of around 22,000 individuals. The Verge recently acquired an internal memo from Phil Spencer, the CEO of Microsoft Gaming, confirming these layoffs.

Spencer emphasized the commitment of Microsoft Gaming and Activision Blizzard’s leadership to developing a strategy with a sustainable cost structure as they move forward in 2024. They have been working together to set priorities, identify areas of overlap, and focus on growth opportunities.

Unfortunately, as part of this strategic alignment, they have made the difficult decision to reduce the gaming workforce by about 1,900 roles out of the 22,000 total team members. Spencer and the Gaming Leadership Team intend to navigate this process with care and consideration. They express gratitude for the contributions of those affected and promise to provide support, including severance benefits.

Despite these challenges, Microsoft remains dedicated to investing in areas that will drive business growth and bring games to a wider audience worldwide. While it’s a trying time, the team remains confident in their ability to create and nurture the games that unite players.

In addition to the layoffs, Blizzard President Mike Ybarra has chosen to depart from the company. Matt Booty, Microsoft’s game content and studios president, announced this in an internal memo. Microsoft plans to announce a new Blizzard president in the coming week, and Allen Adham, Blizzard’s chief design officer, is also leaving.

As part of these changes, Blizzard’s previously announced survival game has been canceled. However, Microsoft plans to redirect some of the affected team members to promising new projects in the early stages of development at Blizzard.

These layoffs occur in the same month as announcements of cuts from companies like Riot Games, Google, Discord, Twitch, Unity, eBay, and others.

Microsoft’s acquisition of Activision Blizzard, valued at $68.7 billion, was completed in October after months of regulatory battles in the UK and US. Former Activision Blizzard CEO Bobby Kotick stepped down, and a group of Activision Blizzard executives now report to Matt Booty.

This development follows recent leadership changes at Xbox, with Sarah Bond being promoted to Xbox president and Matt Booty taking on the role of president of game content and studios, which includes overseeing Bethesda, ZeniMax studios, and Activision Blizzard.

It’s worth noting that Microsoft’s last major round of layoffs was announced a year ago, affecting 10,000 employees. The company is set to report its fiscal Q2 2024 earnings, which will include results from the impact of the Activision Blizzard acquisition, in the coming week.