Microsoft's Recent Layoffs Continue Across Multiple Divisions
Reports indicate that Microsoft has conducted another round of layoffs impacting its gaming, security, and sales divisions. The exact number of employees affected remains undisclosed. Importantly, these job cuts are separate from a previous layoff announcement 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 also 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, impacting its Xbox division. In January, the company announced the termination of 1,900 Xbox employees, including staff at acquired companies like Activision Blizzard and ZeniMax. A further 650 corporate and support employees at Activision Blizzard were laid off in September.
A Business Insider report (via GamesIndustry.biz) now suggests another, smaller round of layoffs. While a Microsoft spokesperson confirmed the cuts, the precise number of employees affected remains unannounced. 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 notable 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 them as a basis to oppose or reverse Microsoft's acquisition of Activision Blizzard.
Previous layoffs have also impacted Xbox's physical retail teams, most of Blizzard's customer service team, and internal development studios such as Sledgehammer Games and Toys for Bob. Blizzard's unannounced survival game, codenamed Project Odyssey, was also canceled. The full extent of the most recent layoffs and their potential impact on the Xbox division remain uncertain.
