Microsoft lays off 1,900 workers, nearly 9% of gaming division, after Activision Blizzard acquisition

Microsoft will lay off around 1,900 employees in its Gaming unit, or around 9% of Microsoft Gaming's 22,000 employees, according to a Thursday memo obtained by CNBC.

Microsoft Gaming CEO Phil Spencer said that the layoffs were part of a larger "execution plan" that would reduce "areas of overlap," a little more than three months after Microsoft closed on its acquisition of Activision Blizzard.

Former Blizzard president Mike Ybarra said Thursday on social media platform X he would be leaving Microsoft and Blizzard.

Activision Blizzard is the publisher and developer of several massive gaming franchises, including Call of Duty and Diablo. Its mobile gaming subsidiary, King, is the developer behind Candy Crush Saga.

Layoffs are often expected after large mergers close. Microsoft's $69 billion acquisition of Activision Blizzard was the company's largest ever acquisition, more than double the size of its 2016 purchase of LinkedIn.

Microsoft said it would provide "full support" including location-dependent severance to all employees.

Tech companies have made deep cuts just weeks into 2024, most of which were unrelated to mergers and acquisitions. The layoffs, at companies ranging from Tencent-owned Riot Games to TikTok to Discord, follow a dismal 2023 which saw more than 100,000 tech workers laid off.

Earlier this week, eBay said it would lay off 1,000 workers, while SAP said it would shift or buy out 8,000 employees.

Microsoft did not immediately respond to CNBC's request for comment.

Read the full memo below:

It's been a little over three months since the Activision, Blizzard, and King teams joined Microsoft. As we move forward in 2024, the leadership of Microsoft Gaming and Activision Blizzard is committed to aligning on a