Microsoft Reportedly Lays Off More Employees

Microsoft's Recent Layoffs Continue to Impact Gaming, Security, and Sales Divisions

Reports indicate that Microsoft has conducted another round of layoffs, affecting employees across its gaming, security, and sales divisions. The exact number of employees impacted remains undisclosed. Crucially, this latest wave of job cuts is separate from previous layoff announcements made earlier in January and this month.

The gaming industry has faced significant challenges in recent years, with numerous companies, including Microsoft, implementing substantial workforce reductions in 2024. This includes both large and small studios, 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's own restructuring began early in 2024, with a January announcement of 1,900 job cuts within its Xbox gaming division, encompassing acquired companies like Activision Blizzard and ZeniMax. Further reductions of 650 corporate and support staff at Activision Blizzard followed 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 affected employees remains unconfirmed. These latest reductions are distinct from earlier cuts targeting underperforming employees not directly linked to Xbox.

The Broader Context of Microsoft's Restructuring

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 significant January 2024 layoffs. The initial wave of cuts drew scrutiny from the FTC, which attempted to use them as grounds to oppose or reverse Microsoft's acquisition of Activision Blizzard.

Previous Microsoft layoffs have impacted various areas, including Xbox's physical retail teams, a large portion 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 impact of this latest round of layoffs on the Xbox gaming division remains uncertain, pending confirmation of the number of affected employees.