Microsoft Corp. is laying off 1,900 workers, or about 9% of its gaming division’s 22,000 headcount, according to a memo obtained by The Verge.

A majority of those affected will come from Activision Blizzard Inc., but cuts will also cross other portions of Microsoft Gaming including Xbox and ZeniMax Media Inc.

Microsoft Gaming Chief Executive Phil Spencer confirmed the layoffs today in a memo stating that the layoffs are part of “a strategy and an execution plan with a sustainable cost structure” to support the growth of the business.

Microsoft acquired Activision Blizzard Inc. in October for $68.7 billion nearly two years after announcing plans to buy the video game publisher and developer. Activision Blizzard is well-known for producing best-selling games such as “World of Warcraft,” “Diablo 4,” and “Call of Duty: Modern Warfare III.” Its mobile gaming subsidiary, King Digital Entertainment, is also the developer being the global hit “Candy Crush Saga,” which celebrated $20 billion in revenue and five billion downloads since its debut in 2012 late last year.

In addition to the layoffs, Blizzard President Mike Ybarra announced his departure on X, formerly Twitter. “I want to thank everyone who is impacted today for their meaningful contributions to their teams, to Blizzard, and to players’ lives,” Ybarra wrote. “To the Blizzard community: I also want to let you all know today is my last day at Blizzard. Leading Blizzard through an incredible time and being part of the team, shaping it for the future ahead, was an absolute honor.”

Microsoft is also cancelling Activision Blizzard’s untitled survival game that would have added yet another genre to the company’s stable of gaming development experience. The game, announced two years ago, would have potentially become a survival-sandbox style game but few details emerged since its initial unveiling and now employees working on the game have been moved to other projects.

These cuts have been part of wave of layoffs hitting the gaming and tech industry in the past month. Amazon.com Inc.-owned livestreaming platform Twitch announced 35%, or about 500 workers. Video game software engine provider Unity Software Inc. laid off 25% of its workforce, or about 1,800 jobs. Discord cut 170 of its employees at 17% of its staff.

Major tech companies also announced layoffs in January. Enterprise software giant SAP SE laid off 8,000 workers, representing 7% of its workforce, though it says it expects jobs to remain steady overall with new hiring, and the printer maker Xerox Holdings Corp. announced plans to lay off 15% of its staff. And this week eBay laid off about 1,000 people, or 9% of its staff.

Photo: Microsoft