Microsoft, Reikon Games, and Black Forest Games collectively just laid off roughly 2000 employees, while Blizzard is going through major leadership changes. Read on to learn more about the situation.
Massive Layoffs and Leadership Changes for Microsoft and Activision Blizzard
1900 Employees Laid off Across Xbox, Zenimax, and Blizzard
Here come the quadruple digits! Microsoft just laid off 1900 employees – roughly 8% of its 22,000-strong workforce – from its gaming division. Though the job cuts primarily affect Activision Blizzard, a few workers from Zenimax and Xbox were also let go
"Together, we’ve set priorities, identified areas of overlap, and ensured that we’re all aligned on the best opportunities for growth," said Microsoft Gaming CEO Phil Spencer in an internal memo. "As part of this process, we have made the painful decision to reduce the size of our gaming workforce by approximately 1900 roles out of the 22,000 people on our team."
"The Gaming Leadership Team and I are committed to navigating this process as thoughtfully as possible," the memo continued. "We will provide our full support to those who are impacted during the transition, including severance benefits informed by local employment laws."
Microsoft’s most recent massive wave of layoffs before this was in mid-January last year when 10,000 employees were let go. This remains Microsoft’s largest layoff to date.
Blizzard President Mike Ybarra Leaves Company
Sweeping job cuts aren’t the only things affecting Activision Blizzard in the wake of Microsoft’s company-wide changes. Blizzard President Mike Ybarra will be departing from the company on the same day as the layoffs, alongside Blizzard’s Chief Design Officer, Allen Adham.
"Leading Blizzard through an incredible time and being part of the team, shaping it for the future ahead, was an absolute honor," said Ybarra on a Twitter (X) post going over his departure. "To the incredible teams at Blizzard - thank you. Words can’t express how I feel about all of you. You are amazing."
Microsoft’s Game Content and Studios President Matt Booty acknowledged Adham’s departure in addition to Ybarra’s, stating the following in an internal memo "His influence will be felt for years to come, both directly and indirectly as Allen plans to continue mentoring young designers across the industry."
Blizzard’s new president will be announced next week. No clear forerunner is currently up to bat for the position so the best we can do is wait and see.
Blizzard’s Untitled Survival Game Canceled
The major changes continued as one of Blizzard’s latest titles – an untitled survival game previously announced in 2021 – has been canceled in light of recent leadership changes and job cuts. Booty says that Microsoft is "shifting some of the people working on it to one of several promising new projects Blizzard has in the early stages of development."
Reikon Games Lays off 80% of its Staff
The numbers only pile on as Reikon Games – developers of the 2017 action game Ruiner – lays off a whopping 80% of its staff. Sources said that four out of every five workers have been let go, resulting in around "60 or 70 people" losing their jobs. Sources also said that the layoffs were completely unexpected, with some of them describing it to be "sudden and shocking."
Final Form Possibly Canceled
Reikon Games was working on a sci-fi FPS called Final Form at the time of the layoffs. The game was first announced in 2021 as part of their parent company – Plaion’s – Prime Matter gaming label.
While the game’s trailer remains on Reikon Games’ official YouTube channel, the same video has been set to private on Plaion’s channel. The state of the game’s release remains uncertain at this time.
Black Forest Games Lays off Half of its Staff
Continuing this unfortunate chain of layoffs is Black Forest Games, an Embracer-owned game company that made the Destroy All Humans! remakes. Laid-off staff revealed on social media that the Germany-based company let go of around half of its workforce. Although no official number was given, the company went public with its headcount last year, coming in at 110 workers.
TMNT: The Last Ronin’s Development Uncertain
Black Forest Games was working on a video game adaptation of Teenage Mutant Ninja Turtles: The Last Ronin – a dark and gritty take on the standard TMNT formula. The game was first announced by THQ (now THQ Nordic) last year for the Xbox Series X|S, PlayStation 5, and PC; although recent reports suggested that the game was years away from being released. The state of the game’s development in light of Black Forest Games’ latest job cuts remains uncertain.
Sources:
Ruiner studio Reikon Games has reportedly laid off around 80% off its staff
Destroy All Humans studio reportedly cuts half its staff
Microsoft lays off 1,900 Activision Blizzard and Xbox employees
