Microsoft Reportedly Lays Off More Employees

Summary

• Microsoft has reportedly conducted further layoffs impacting its gaming, security, and sales divisions.
• The exact number of employees affected remains undisclosed.
• These layoffs are separate from previous cuts announced in January.

Microsoft has reportedly implemented another round of layoffs across its gaming, security, and sales divisions. The gaming industry has faced significant challenges in recent years, with numerous companies, including Microsoft, announcing substantial job cuts in 2024. This includes 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 experienced several rounds of layoffs since the beginning of 2024. In January 2024, the company announced the termination of 1,900 employees within its Xbox gaming division, encompassing staff from acquired companies like Activision Blizzard and ZeniMax. Further cuts in September 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 exact number of employees impacted remains unspecified. These latest reductions are distinct from earlier January layoffs targeting underperforming employees outside the Xbox division.

Microsoft's Continued Layoffs and Their Implications

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 cuts drew scrutiny from the FTC, which attempted to use the Activision Blizzard layoffs as justification to block or reverse Microsoft's acquisition of the Call of Duty publisher.

Previous Microsoft layoffs have affected various teams, including Xbox's physical retail teams, much of Blizzard's customer service, and internal development studios like Sledgehammer Games and Toys for Bob. Blizzard's unannounced survival game, codenamed Project Odyssey, was also canceled following these layoffs. The scale and impact of the latest reported layoffs on the Xbox gaming division remain uncertain.