Microsoft Reportedly Lays Off More Employees

Microsoft's Recent Layoffs: Another Round of Cuts Across Multiple Divisions

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

The gaming industry has faced significant challenges in recent years, with numerous companies, including Microsoft, implementing substantial workforce reductions in 2024. This trend has affected both large studios and smaller independent developers, with recent examples including IllFonic (Predator: Hunting Grounds) and People Can Fly (Outriders). Rocksteady's layoffs following the release of Suicide Squad: Kill the Justice League further highlight the industry's instability.

Microsoft's own restructuring began in early 2024, with a January announcement of 1,900 job cuts within its Xbox gaming division, encompassing acquired companies like Activision Blizzard and ZeniMax. A subsequent September layoff impacted 650 corporate and support staff at Activision Blizzard.

A Business Insider report (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 latest reductions are distinct from earlier January cuts targeting underperforming employees outside the Xbox division.

The Broader Context of Microsoft's Layoffs

Microsoft's ongoing layoffs are particularly significant given its recent acquisitions of major publishers like Bethesda and Activision Blizzard, and its achievement of a $3 trillion market valuation shortly after the initial January 2024 layoffs. These initial cuts drew scrutiny from the FTC, which initially attempted to use them to impede or reverse Microsoft's merger with Activision Blizzard.

Previous Microsoft layoffs have impacted various areas, including Xbox's physical retail teams, the majority of Blizzard's customer service team, and internal development studios such as Sledgehammer Games and Toys for Bob. The cancellation of Blizzard's unannounced survival game, codenamed Project Odyssey, also resulted from these restructuring efforts.

The scale and impact of the latest reported layoffs on Microsoft's Xbox gaming division remain uncertain pending further confirmation of the affected employee count.