Microsoft Reportedly Lays Off More Employees

Microsoft's Recent Layoffs Continue Across Multiple Divisions

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

The gaming industry has experienced significant workforce reductions in recent years, with numerous companies, including Microsoft, implementing substantial layoffs in 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 been significantly impacted, experiencing Xbox workforce reductions since the beginning of 2024. In January 2024, the company announced 1,900 layoffs within its Xbox gaming division, encompassing employees at acquired companies like Activision Blizzard and ZeniMax. A subsequent September layoff affected 650 corporate and support staff at Activision Blizzard.

A new report from Business Insider (via GamesIndustry.biz) suggests another round of layoffs has occurred. While a Microsoft spokesperson confirmed the cuts, the precise number of employees affected remains unconfirmed and described as a "small number." These layoffs are unrelated to earlier cuts targeting underperforming employees outside the Xbox division.

Microsoft's Layoff Wave and its Implications

Microsoft's continued layoffs are particularly notable given its recent acquisitions of major publishers such as Bethesda and Activision Blizzard, and its achievement of a $3 trillion market valuation shortly after the large-scale January 2024 layoffs. The initial wave of layoffs drew criticism from the FTC, which attempted to use them as a reason to block or reverse Microsoft's acquisition of Activision Blizzard.

Previous Microsoft layoffs have impacted various areas, including Xbox's physical retail teams, much of Blizzard's customer service team, and internal development studios like Sledgehammer Games and Toys for Bob. Blizzard's unannounced survival game, codenamed Project Odyssey, was also canceled. The full extent of the latest layoffs and their impact on the Xbox division remains uncertain.