Microsoft Lays Off More Staff: Report

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

Microsoft has reportedly laid off even more employees across its gaming, security, and sales divisions, continuing a trend that has seen numerous companies in the video game industry announce significant layoffs in 2024. This year has been particularly challenging for game developers, with major studios and smaller indie companies alike affected. Recent examples include layoffs at IllFonic, the developer behind Predator: Hunting Grounds, and People Can Fly, known for Outriders. Additionally, Rocksteady faced another round of layoffs following the mixed reception to Suicide Squad: Kill the Justice League.

Microsoft has been at the forefront of these layoffs, with the company cutting back on its Xbox workforce since the beginning of 2024. In January, Microsoft announced the layoff of 1,900 employees from its Xbox gaming division, which included staff from acquired subsidiaries such as Activision Blizzard and ZeniMax. Another 650 employees were let go in September from corporate and support roles at Activision Blizzard.

A new report from Business Insider, cited by GamesIndustry.biz, suggests that Microsoft might have initiated another round of layoffs. A Microsoft spokesperson indicated that these latest cuts would affect a small number of staff members, but did not disclose the exact number of employees impacted. Importantly, these layoffs are separate from an earlier round of cuts announced in January, which focused on underperforming workers not necessarily connected to the Xbox division.

Microsoft Could Be Laying Off More Xbox Employees

Microsoft's ongoing layoffs are significant, especially given the company's recent acquisitions of major publishers like Bethesda and Activision Blizzard. This comes shortly after Microsoft reached a $3 trillion market valuation following the massive layoffs in January 2024. Those initial cuts led to scrutiny from the FTC, which considered using the layoffs at Activision Blizzard as a basis to challenge or reverse Microsoft's high-profile merger with the Call of Duty publisher.

Previous Microsoft layoffs have impacted various sectors, including Xbox’s physical retail teams, most of Blizzard’s customer service team, and in-house developers such as Sledgehammer Games and Toys for Bob. The cancellation of Blizzard’s survival game, codenamed Project Odyssey, was another consequence of these layoffs. The exact number of employees affected by the most recent layoffs remains undisclosed, leaving the potential impact on the Xbox gaming division uncertain.