Microsoft, the American software and technology giant, is planning to lay off 1,900 employees in its gaming division, including Activision Blizzard, which it acquired last year for $69 billion.
Phil Spencer, head of Microsoft’s gaming division, said that the number of jobs to be cut represents about 8% of the total workforce in the division, which is about 22,000 employees, according to Bloomberg.
In a memo to employees, Spencer said, “Together, we’re setting priorities, identifying areas of overlap, and ensuring that we’re focused on the best opportunities for growth.”
The layoffs come at a time when Activision Blizzard is also implementing a major restructuring that includes canceling the game “Odyssey.”
The layoffs also come at a time when Microsoft’s market capitalization surpassed $3 trillion for the first time ever, a clear sign of investor optimism about the company’s future performance in artificial intelligence in particular.
Microsoft’s stock has risen by about 7.7% since the beginning of the year to reach $404.87 at the close of trading on Thursday, bringing the company’s total market capitalization to about $3 trillion. This increase strengthens Microsoft’s position as the second-largest publicly traded company on Wall Street after Apple.
