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Microsoft cuts 1,900 Activision Blizzard staff, cancels new game Odyssey after six years of development

  • Microsoft, which bought Activision Blizzard three months ago, is laying off 8 per cent of the gaming division’s total staff
  • They include many members of the team working on a game code-named Odyssey, as well as Blizzard president Mike Ybarra

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Microsoft is letting go of 1,900 employees as part of a reorganisation after it acquired Activision Blizzard. Photo: Reuters
Video-game maker Blizzard Entertainment cancelled one of its biggest projects on Thursday as part of a reorganisation under new owner Microsoft that led to mass lay-offs of 1,900 people, or 8 per cent of the gaming division’s total staff.
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The cancellation of the game, code-named Odyssey, left Blizzard employees reeling as some lost their jobs and others were left wondering about the future of the studio.

Microsoft announced the news in an email to employees early Thursday morning, and many members of the Odyssey team were subsequently informed that they were being let go. The news arrived three months after Microsoft closed the US$69 billion acquisition of Activision Blizzard in the largest video-game deal in history.

As part of the reorganisation, Blizzard also parted ways with president Mike Ybarra and chief design officer Allen Adham, one of the company’s co-founders. Blizzard said its new president will be announced next week.

The Blizzard Entertainment campus in Irvine, California. Photo: Getty Images/TNS
The Blizzard Entertainment campus in Irvine, California. Photo: Getty Images/TNS

The maker of many hit games, including World of Warcraft and Diablo IV, has mostly focused on its large, existing franchises. But in recent years, the company made a big investment in Odyssey, building up a team of more than 100 people to develop it.

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