ISTANBUL

Microsoft will lay off 9% of its gaming division, months after completing the acquisition of Activision Blizzard. 

"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," Microsoft Gaming CEO Phil Spencer wrote in a memo to employees.

"As part of this process, we have made the painful decision to reduce the size of our gaming workforce by approximately 1900 roles out of the 22,000 people on our team," he said.

Spencer said employees who will be affected will be notified and receive severance benefits.

The acquisition was approved by the US in July after the Federal Trade Commission applied in June for a temporary restraining order and preliminary injunction seeking to block the acquisition. It argued that the deal would enable Microsoft to suppress competitors against its Xbox gaming consoles, subscription content and cloud-gaming business.

After the European Commission approved the acquisition in May, the UK's Competition and Markets Authority cleared the agreement on Oct. 13 and the deal was closed that day.

Activision Blizzard has popular video game franchises, including Call of Duty, Guitar Hero, Diablo and Warcraft.