Blizzard Entertainment is reportedly preparing for a new round of layoffs, according to journalist Jason Schreier. The company recently completed contract negotiations with a union representing approximately 1,900 employees, which included provisions for severance compensation and recall rights, yet staff remain subject to broader organizational changes.
The upcoming staff reductions are part of a wider restructuring initiative within Microsoft's Xbox division, internally referred to as Xbox Reset. This reorganization aims to eliminate approximately 3,200 positions across the gaming segment by the end of the current fiscal year. Blizzard, as a key studio, is directly impacted by these corporate cost-control measures.
Schreier clarified that the recent announcements of major projects at BlizzCon, such as Diablo V and StarCraft: Dominion, are not a response to the layoffs. Planning for these titles began long before the personnel adjustments, which were initiated in July after staff were notified in June. Microsoft and Blizzard have yet to confirm specific details regarding the timeline or affected departments.
