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 reductions announced earlier in January and later in the year.

The gaming industry has experienced significant upheaval 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 announced layoffs following the mixed reception of Suicide Squad: Kill the Justice League.

Microsoft's own workforce reductions began in early 2024. In January, the company announced the elimination of 1,900 Xbox division roles, impacting acquired subsidiaries like Activision Blizzard and ZeniMax. Subsequently, in September, an additional 650 corporate and support staff at Activision Blizzard were laid off.

A new report from Business Insider (via GamesIndustry.biz) suggests another round of layoffs at Microsoft. While a spokesperson confirmed the cuts, the specific number of employees affected remains unconfirmed. These latest reductions are distinct from earlier cuts targeting underperforming employees outside the Xbox division.

The Broader Context of Microsoft's Layoffs

Microsoft's ongoing layoffs are 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 the Microsoft-Activision Blizzard merger.

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