Microsoft Lays Off More Staff: Reports

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 initiated another round of layoffs, affecting employees in its gaming, security, and sales divisions. The video game industry has faced significant challenges in recent years, with numerous companies, including Microsoft, announcing substantial layoffs in 2024. These cuts have affected both major studios and smaller indie developers, such as IllFonic, the developer behind Predator: Hunting Grounds, and People Can Fly, known for Outriders. Earlier this month, Rocksteady also announced layoffs following the mixed reception of Suicide Squad: Kill the Justice League.

Microsoft, one of the most prominent companies affected by recent layoffs, began reducing its Xbox workforce at the start of 2024. In January, Microsoft announced the layoff of 1,900 staff members from its Xbox gaming division, including employees at acquired subsidiaries like Activision Blizzard and ZeniMax. In September, an additional 650 employees were let go from corporate and support positions at Activision Blizzard.

According to a recent report from Business Insider (via GamesIndustry.biz), Microsoft may have conducted another round of layoffs. A Microsoft spokesperson indicated that these latest cuts would affect a small number of staff members, though the exact number remains unspecified. Importantly, these new layoffs are separate from an earlier round of cuts announced earlier in the month, which targeted underperforming employees not necessarily connected to Xbox.

Microsoft Could Be Laying Off More Xbox Employees

Microsoft's ongoing layoffs are particularly significant given the company's recent acquisitions of major publishers like Bethesda and Activision Blizzard. This comes shortly after Microsoft reached a $3 trillion market valuation following massive layoffs in January 2024. The initial wave of cuts prompted complaints from the FTC, which considered using the layoffs at Activision Blizzard as a basis to challenge or reverse Microsoft's high-profile merger with the Call of Duty publisher.

Previous Microsoft layoffs have impacted 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 amid these layoffs. The number of employees affected by the latest reported layoffs at Microsoft remains unconfirmed, leaving uncertainty about the potential impact on the Xbox gaming division.