Layoffs after this size of merger are pretty typical. The number of people seems high, but it might be due to Activision’s own acquisitions over the years.

First round of layoffs after a merger is consolidation of corporate administrative functions. ActiBlizz finance, accounting, HR, etc is no longer needed. Microsoft already has all those needs covered. And it wouldn’t surprise me to learn ActiBlizz had a lot of administrative bloat.

Most of the knowledge workers will be kept for now. Will be future cuts there as objectives are finalized and staff needed becomes clear.