Microsoft Reportedly Lays Off More Employees

Microsoft's Recent Layoffs Continue to Impact Gaming, Security, and Sales Divisions

Reports indicate further job cuts at Microsoft, affecting its gaming, security, and sales divisions. The exact number of employees impacted remains undisclosed. Importantly, these layoffs are separate from previous rounds of cuts announced earlier in January and more recently.

The gaming industry has experienced significant challenges in recent years, with numerous companies, including Microsoft, implementing substantial layoffs throughout 2024. This has affected both large studios and smaller independent developers, with recent examples including IllFonic (Predator: Hunting Grounds) and People Can Fly (Outriders). Rocksteady also recently announced layoffs following the mixed reception of Suicide Squad: Kill the Justice League.

Microsoft itself has undertaken multiple rounds of layoffs since the beginning of 2024, impacting its Xbox division. In January 2024, 1,900 Xbox employees were let go, including staff at acquired companies like Activision Blizzard and ZeniMax. A further 650 corporate and support employees at Activision Blizzard were laid off in September.

According to a Business Insider report (via GamesIndustry.biz), another round of layoffs has occurred. While a Microsoft spokesperson confirmed the cuts, the specific number of affected employees remains unannounced. These latest reductions are distinct from earlier cuts focused on underperforming employees outside the Xbox division.

The Broader Context of Microsoft's Layoffs

Microsoft's ongoing layoffs are particularly noteworthy given its recent acquisitions of major publishers like Bethesda and Activision Blizzard, and its achievement of a $3 trillion market valuation shortly after the significant January 2024 layoffs. The initial wave of job cuts drew scrutiny from the FTC, which attempted to use the Activision Blizzard layoffs to challenge Microsoft's acquisition of the Call of Duty publisher.

Previous Microsoft layoffs have impacted Xbox's retail teams, most of Blizzard's customer service, and internal development studios such as Sledgehammer Games and Toys for Bob. Blizzard's unannounced survival game, codenamed Project Odyssey, was also canceled. The scale and impact of these latest layoffs on the Xbox gaming division remain uncertain.