Microsoft announced Thursday that it will layoff nearly 2,000 employees, according to an internal memo from CEO Phil Spencer. While the layoffs will primarily affect employees at Activision Blizzard, a gaming company Microsoft acquired in October 2023, the cuts will also impact some Microsoft employees. Blizzard President Mike Ybarra and Allen Adham, Blizzard’s co-founder and chief design officer, will also step down, according to a memo from head of Microsoft Studios Matt Booty, obtained by The Verge. Microsoft will be eliminating approximately 1,900 roles, which accounts for 8 percent of Microsoft’s 22,000-person gaming division. Ybarra posted on X to express his gratitude to his employees. “It’s an incredibly hard day and my energy and support will be focused on all those amazing individuals impacted—this is in no way a reflection on your amazing work,” Ybarra wrote.