Microsoft's Xbox division is undertaking a significant restructuring effort, with Blizzard initially named as a studio facing 'reductions' and investment shifts despite Microsoft's $68.7 billion acquisition of the developer. However, multiple sources indicate Blizzard has escaped the current layoff round, supported by a statement from Blizzard President Johanna Faires and reporting from Windows Central citing anonymous sources confirming the studio's reprieve.

Union member Benjamin Wagner noted that no unionised employees at Blizzard were affected by the current cuts, suggesting the company may have avoided severance actions for protected workers. Nevertheless, Xbox remains in the midst of broader staffing reductions, with plans for an additional 1,600-person layoff wave scheduled for 2027, meaning Blizzard's current safety from the cuts does not guarantee future protection from further restructuring efforts.