Activision Blizzard to begin layoffs in Irvine and Santa Monica next month

Activision Blizzard is set to implement significant layoffs at its Irvine and Santa Monica locations, starting next month, as part of a broader cost-cutting initiative by its parent company, Microsoft. On September 12, the company informed approximately 400 employees about the impending job cuts. By the end of the year, 140 positions will be eliminated in Irvine and 110 in Santa Monica. Additionally, layoffs at the Playa Vista facility will commence in November, affecting 143 employees. These layoffs are part of Microsoft's strategy to reduce its global gaming workforce by 3%, which translates to around 650 jobs. This decision follows Microsoft's acquisition of Activision Blizzard, a $69 billion deal that marked a significant moment in the video game industry, facing scrutiny from antitrust regulators. Phil Spencer, the CEO of Microsoft Gaming, communicated to staff that the layoffs are intended to align the team structure post-acquisition and manage business operations effectively. The affected roles primarily involve corporate and support functions, including recruiting, IT, and human resources. The layoffs reflect a shift in the company's operational focus and a response to the changing landscape of the gaming industry, as Microsoft seeks to streamline its workforce and enhance efficiency in its gaming division.