Recently, Microsoft’s gaming division, including Activision Blizzard and Xbox, has made the regrettable decision to lay off 1,900 employees. These layoffs, as reported by The Verge and disclosed in a memo by Microsoft Gaming CEO Phil Spencer, amount to about 9% of the 22,000 employees in Microsoft Gaming.

It seems that the video game industry, much like a rollercoaster ride, has its ups and downs. Just last week, Tencent’s Riot Games announced the layoff of 530 employees, marking an 11% reduction in its workforce. Similarly, in early January, Unity announced a 25% reduction in its workforce, and Amazon’s Twitch planned to cut approximately 35% of its employees.

As part of this restructuring, Blizzard president Mike Ybarra, a 20-year veteran at Microsoft, will also be departing from the company. “It was great to be part of the team that built Blizzard and ATVI over the years. I’ve decided to transition out now that it’s merging with MSFT,” said Ybarra in a post on LinkedIn.

According to the report, Microsoft is looking to appoint a new Blizzard president next week, and Allen Adham, Blizzard’s chief design officer, will also be stepping down. Additionally, a previously announced survival game by Blizzard has been canceled.

This reshuffle comes after Microsoft’s $69 billion acquisition of Activision Blizzard, which finally closed in October 2023 after encountering resistance from U.S. and UK regulators.