Microsoft Layoffs Affect Toys for Bob and Sledgehammer Games Amid Industry Turmoil

Toys for Bob transitions to remote work following layoffs, as FTC challenges Microsoft's acquisition of Activision Blizzard.

Microsoft's recent layoffs impact 86 employees at Toys for Bob and 76 at Sledgehammer Games, with Toys for Bob's office in Novato, California, closing down.
Toys for Bob, known for developing the Skylanders series and Crash Bandicoot 4, will transition to a remote working model, despite initial reports of a full closure.
The layoffs are part of Microsoft's broader restructuring following its acquisition of Activision Blizzard, affecting nearly 2,000 employees across various gaming teams.
The Federal Trade Commission (FTC) has filed a complaint against Microsoft, arguing that the layoffs contradict Microsoft's representations and requesting a temporary pause on the Activision Blizzard acquisition.
The gaming industry has faced a turbulent period with over 6,000 layoffs in 2024 alone, following a year where an estimated 10,500 workers were laid off.