Microsoft closed at a $3 trillion USD valuation today, edging out Apple in total market cap, as it continues to demonstrate its prowess across the tech space -- offering everything from software and operating systems to hardware like the Surface. Despite all of its success, some segments of its business are facing hardships. While its gaming division celebrated the unprecedented acquisition of Activision Blizzard last year after undergoing several battles with antitrust law, The Verge has reported on an internal memo that notes layoffs are on the way.
Just months after the acquisition was finalized, approximately 1,900 roles within the teams of Xbox and Activision Blizzard are being removed. "As we move forward in 2024, the leadership of Microsoft Gaming and Activision Blizzard is committed to aligning on a strategy and an execution plan with a sustainable cost structure that will support the whole of our growing business," noted Microsoft CEO Phil Spencer, the author of the memo being reported on. For context, approximately 9 percent of current Microsoft Gaming employees are said to be facing layoffs. On top of this, Mike Ybarra, the president of Blizzard, has opted to leave the company now that the acquisition has been completed.
Stay tuned for additional developments from both Microsoft and the tech industry as a whole as layoffs continue to run rampant this year.