Microsoft Reportedly Lays Off More Employees

Microsoft's Recent Layoffs: Further Cuts Across Multiple Divisions

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

The gaming industry has experienced significant workforce reductions in 2024, with numerous companies, including Microsoft, implementing substantial layoffs. This trend has affected both large studios and smaller independent developers. Recent examples include layoffs at IllFonic (Predator: Hunting Grounds) and People Can Fly (Outriders), as well as Rocksteady's job cuts following the release of Suicide Squad: Kill the Justice League.

Microsoft's own workforce reductions began in early 2024. A significant January layoff impacted 1,900 Xbox division employees, including staff at acquired companies like Activision Blizzard and ZeniMax. Further cuts in September affected 650 corporate and support staff at Activision Blizzard.

A Business Insider report (via GamesIndustry.biz) suggests another, smaller round of layoffs has occurred. While a Microsoft spokesperson confirmed the cuts, the precise number of employees affected remains unconfirmed. These latest reductions are distinct from earlier cuts targeting underperforming employees, potentially unrelated to 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 cuts drew scrutiny from the FTC, which 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, 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 followed these reductions.

The impact of the latest round of layoffs on the Xbox gaming division remains uncertain, pending confirmation of the number of employees affected.