- The latest redundancies are said to be in response to “shift priorities” and the need to “manage the lifecycle and performance of games”.
- Both titles will continue operating after the layoffs.
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Microsoft’s latest wave of layoffs has reportedly impacted the Call of Duty Warzone: Mobile and Warcraft Rumble teams.
A source familiar with the matter told Game File that these cutbacks aren’t related to Activision Blizzard’s acquisition by Microsoft, but are a response to “shifting priorities”. The titles are expected to continue operating.
The majority of the layoffs impacted corporate and support roles at Activision Blizzard.
Scaling back
Microsoft Gaming CEO Phil Spencer announced last week that there would be approximately 650 layoffs as part of a plan to align its “post-acquisition team structure”. He assured employees that “no games, devices or experiences are being cancelled and no studios are being closed as part of these adjustments”.
The source claimed the layoffs are tied to Spencer wanting to “manage the lifecycle and performance of games”.
While mobile was stated a core reason for Microsoft’s Activision Blizzard acquisition – bringing Candy Crush giant King into its long list of subsidiaries – Call of Duty Warzone: Mobile hasn’t exactly reached the heights of its forebear.
Warzone Mobile has generated $17.1 million in almost six months since its release. By contrast, Call of Duty: Mobile made $176.4 million in gross revenue during its equivalent launch period – over 10 times more sales, according to AppMagic data.
Blizzard Entertainment’s tower defence title Warcraft Rumble launched last November and has generated $60.8 million to date.
Microsoft’s latest round of layoffs comes after 1,900 employees were let go in one fell swoop earlier this year. Back in January, the tech conglomerate went all-in on its restructuring efforts despite assuring America’s Federal Trade Commission that the merged companies would “maintain the pre-merger status quo“.
