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 unconnected to a previous round of cuts announced earlier in January.

Microsoft has recently announced additional 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, implementing substantial layoffs throughout 2024. These layoffs have impacted a wide range of studios, from major developers to smaller indie teams. Notable recent examples include IllFonic, the developer behind Predator: Hunting Grounds, and People Can Fly, known for Outriders. Additionally, Rocksteady Studios faced layoffs following the mixed reception to Suicide Squad: Kill the Justice League earlier this month.

Microsoft, in particular, has been undergoing a series of workforce reductions since the beginning of 2024. In January, the company announced the layoff of 1,900 employees from its Xbox gaming division, which included staff at acquired subsidiaries such as Activision Blizzard and ZeniMax. Later, in September, another 650 employees were let go, this time from corporate and support roles at Activision Blizzard.

According to a recent report from Business Insider (via GamesIndustry.biz), Microsoft may have conducted yet another round of layoffs. A spokesperson mentioned that these cuts would affect a small number of staff members, though specific numbers were not disclosed. Importantly, these layoffs are separate from an earlier round announced this month, which focused on underperforming workers not necessarily linked to the Xbox division.

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, and the news that Microsoft achieved a $3 trillion market valuation shortly after the extensive January 2024 layoffs. These initial layoffs prompted criticism from the FTC, which attempted to use the job cuts at Activision Blizzard as leverage to block or reverse Microsoft's high-profile merger with the Call of Duty publisher.

Previous layoffs at Microsoft have also affected Xbox's physical retail teams, along with 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 following these layoffs. The exact number of employees impacted by the latest reported layoffs remains undisclosed, leaving the potential effects on the Xbox gaming division uncertain.