Microsoft Reportedly Lays Off More Employees

Microsoft's Recent Layoffs Continue Across Multiple Divisions

Reports indicate further job cuts at Microsoft, impacting employees across its gaming, security, and sales divisions. While the exact number of affected employees remains undisclosed, these layoffs are separate from previous rounds of cuts announced in January and earlier this month.

The gaming industry has experienced significant turmoil in recent years, with numerous companies, including Microsoft, implementing substantial layoffs in 2024. High-profile studios and smaller independent developers have been affected, 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 workforce reductions began in early 2024, with a January announcement of 1,900 job cuts within its Xbox gaming division, encompassing acquired subsidiaries like Activision Blizzard and ZeniMax. A subsequent September layoff impacted 650 corporate and support staff at Activision Blizzard.

A Business Insider report (via GamesIndustry.biz) now suggests another round of layoffs, though a Microsoft spokesperson stated the impact would be limited to a small number of employees, without providing specifics. These cuts are reportedly unrelated to the earlier performance-based layoffs.

The Significance of Microsoft's Layoffs

Microsoft's continued layoffs are particularly noteworthy given its recent acquisitions of major publishers such as Bethesda and Activision Blizzard, and its achievement of a $3 trillion market value shortly after the large-scale January 2024 layoffs. The initial wave of job cuts drew scrutiny from the FTC, which attempted to use them as a basis to challenge or reverse Microsoft's acquisition of Activision Blizzard.

Previous Microsoft layoffs have affected various areas, including Xbox's physical retail teams, most of Blizzard's customer service team, and internal development studios like Sledgehammer Games and Toys for Bob. Blizzard's unannounced survival game, Project Odyssey, was also canceled. The full extent of the latest layoffs and their impact on the Xbox gaming division remains uncertain.