Microsoft Reportedly Lays Off More Employees

Microsoft's Recent Layoffs Continue Across Multiple Divisions

Reports indicate that Microsoft has conducted another round of layoffs, affecting employees across its gaming, security, and sales divisions. The exact number of impacted employees remains undisclosed. Significantly, these job cuts are separate from previous layoff announcements made earlier in January and more recently.

The gaming industry has faced considerable challenges in recent years, with numerous companies, including Microsoft, implementing significant workforce reductions in 2024. This trend has impacted both large studios and smaller independent developers, with recent examples including IllFonic (Predator: Hunting Grounds) and People Can Fly (Outriders). Rocksteady also recently announced layoffs following the mixed reception of Suicide Squad: Kill the Justice League.

Microsoft's own restructuring began in early 2024. In January, the company announced the termination of 1,900 Xbox division employees, encompassing staff at acquired companies like Activision Blizzard and ZeniMax. Further cuts in September impacted 650 corporate and support employees at Activision Blizzard.

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 affected employees remains unconfirmed. These latest reductions are distinct from earlier cuts focused on underperforming employees outside the Xbox division.

The Broader Context of Microsoft's Layoffs

Microsoft's ongoing layoffs are particularly noteworthy given its recent acquisitions of major publishers like Bethesda and Activision Blizzard, and its achievement of a $3 trillion market valuation shortly after the substantial January 2024 layoffs. These initial job cuts prompted complaints from the FTC, which initially attempted to use them as a reason to block or reverse Microsoft's acquisition of Activision Blizzard.

Previous Microsoft layoffs have impacted various areas, including 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 scale and impact of the latest layoffs on the Xbox gaming division remain uncertain pending further confirmation of the employee numbers affected.