Microsoft is set to reduce its video game division, Microsoft Gaming, by approximately 8%, leading to the layoff of around 1,900 employees from the recently acquired gaming giant, Activision Blizzard, as well as Xbox. The move follows the completion of Microsoft's $70 billion acquisition of Activision Blizzard, aimed at bolstering its position in the competitive gaming market, especially against industry leader Sony.

Blizzard president Mike Ybarra and chief design officer Allen Adham are departing the company, and development on Blizzard's anticipated 2022 survival game has been halted. The layoffs come amid a broader trend in the tech industry, with major companies like Alphabet, Amazon, and eBay trimming their workforces to enhance profitability. The Communications Workers of America Union expressed support for affected Microsoft employees and highlighted the importance of having a voice in the workplace.