A Tech Company Now Announces Unexpected Layoffs

A tech company now announces unexpected layoffs after its latest acquisition, affecting nearly 2,000 employees.

Microsoft is laying off 1,900 workers in its Gaming unit, CNBC reports.

The cuts represent around 9% of the 22,000 Microsoft Gaming employees and come three months after Microsoft closed on its $69 billion acquisition of Activision Blizzard.

Blizzard’s president, Mike Ybarra, is leaving, along with Blizzard co-founder and design leader Allen Adham.

Microsoft Gaming CEO Phil Spencer said that the layoffs were part of a larger “execution plan” that would reduce “areas of overlap,” a little more than three months after Microsoft closed on its acquisition of Activision Blizzard.

Activision Blizzard is the publisher and developer of several massive gaming franchises, including Call of Duty and Diablo.

Its mobile gaming subsidiary, King, is the developer behind Candy Crush Saga.

Microsoft shares were largely flat on the news, in part because layoffs are often expected after large mergers close.

Microsoft’s $69 billion acquisition of Activision Blizzard was the company’s largest ever deal, more than double the size of its 2016 purchase of LinkedIn.

Tech companies have made deep cuts just weeks into 2024, most of which were unrelated to mergers and acquisitions.

The layoffs, at companies ranging from Tencent-owned Riot Games to TikTok to Discord, follow a dismal 2023 which saw more than 100,000 tech workers laid off.

Earlier this week, eBay said it would lay off 1,000 workers, while SAP said it would shift or buy out 8,000 employees.

Unlike the Microsoft layoffs, eBay and SAP saw a significant bump in their share prices after their announcements.

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Also Read: A Massive Furniture Company Now Lays Off 1,650 Employees

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Market News Today - A Tech Company Now Announces Unexpected Layoffs.
Market News Today – A Tech Company Now Announces Unexpected Layoffs.

Three massive restaurant chains now begin closing locations as executives state plunging sales are the primary blame.

TGI Friday’s, Chili’s, and Hooters, are closing a total of 38 locations nationwide, reports The-Sun.

Bosses have cited a slump in sales as a reason for the closures, but some customers blame other issues.

TGI Fridays shocked the restaurant business earlier this month when it announced the closure of 36 locations nationwide.

The decision affects restaurants in 12 different states, including seven locations in New Jersey, six in Massachusetts, and five in New York.

President and COO of TGI Fridays Ray Risley described the closures as “opportunities to optimize and streamline our operations” in a press release.

Many of the restaurants have already closed, with signs on the doors informing customers that their old eatery is now gone.

Meanwhile, competitor Chili’s has closed down one restaurant this month.

Diners enjoyed their last meals at the location in the Arboretum shopping center in Charlotte, North Carolina on January 9.

The reason for the closure has been attributed to an expiring lease, a spokesperson for the restaurant chain told the Charlotte Observer.

But locals on a Reddit community for Charlotte have said the location was repeatedly understaffed.

“Not surprising,” wrote one former customer.

“Randomly stopped at this location a few months ago… they were turning people away at the door because the only wait staff they had was the bartender.”

The “breastaurant” industry is not immune to closures either, as Hooters in Lafayette, Louisiana, suddenly closed down this week.

The shutdown was completely out of the blue, with employees showing up to work on Tuesday, January 9 only to find out they no longer had a job.

One employee told local ABC affiliate KATC: “Managers didn’t mention anything.

“As far as I know, our managers didn’t know about the situation. It was a complete shock.”

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Also Read: SNAP Benefits Will Now Increase For The Year 2024

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Market News Today - A Tech Company Now Announces Unexpected Layoffs.
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