Microsoft Lays Off More Staff: Report

Summary

• Microsoft has reportedly laid off more employees across its gaming, security, and sales divisions.
• It's unclear how many employees have been impacted.
• These new layoffs are also unconnected to a previous round of cuts announced earlier in January.

Microsoft has reportedly conducted another round of layoffs affecting its gaming, security, and sales divisions. The video game industry has faced significant challenges in recent years, with numerous companies, including Microsoft, announcing extensive layoffs in 2024. These cuts have impacted both large studios and smaller indie developers. Notable recent layoffs include those at IllFonic, the developer behind Predator: Hunting Grounds, and People Can Fly, known for Outriders. Additionally, Rocksteady, following the mixed reception of Suicide Squad: Kill the Justice League, announced further layoffs earlier this month.

Microsoft, one of the biggest companies affected by these layoffs, has been trimming its Xbox workforce since the beginning of 2024. In January, Microsoft revealed plans to lay off 1,900 employees from its Xbox gaming division, including staff at its recently acquired subsidiaries, Activision Blizzard and ZeniMax. In September, another 650 employees were let go, primarily from corporate and support roles at Activision Blizzard.

According to a recent report from Business Insider (via GamesIndustry.biz), Microsoft has initiated another round of layoffs. A spokesperson mentioned that these cuts would affect a small number of staff, though the exact number of affected employees remains unspecified. Importantly, these latest layoffs are separate from an earlier round of cuts announced in January, which targeted underperforming employees not necessarily connected to the Xbox division.

Microsoft Could Be Laying Off More Xbox Employees

The ongoing layoffs at Microsoft are particularly significant given the company's recent acquisitions of major publishers like Bethesda and Activision Blizzard, as well as its achievement of a $3 trillion market value shortly after the substantial January 2024 layoffs. These initial cuts prompted complaints from the FTC, which attempted to use the layoffs at Activision Blizzard as a basis to challenge or reverse Microsoft's high-profile merger with the Call of Duty publisher.

Previous layoffs at Microsoft have affected various sectors, including Xbox's physical retail teams, most of Blizzard's customer service team, and in-house developers such as Sledgehammer Games and Toys for Bob. Additionally, Blizzard's survival game, codenamed Project Odyssey, was canceled as a result of these layoffs. The impact and the number of employees affected by the latest reported layoffs at Microsoft remain uncertain, leaving questions about the future of the Xbox gaming division.