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

Reports indicate further job cuts at Microsoft, affecting employees across its gaming, security, and sales divisions. The exact number of employees impacted remains undisclosed. Importantly, these layoffs are separate from a previous round of cuts announced earlier in January.

The video game industry has experienced significant challenges in recent years, with numerous companies, including Microsoft, implementing substantial layoffs throughout 2024. This has affected both large studios and smaller independent developers, 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. In January, the company announced the termination of 1,900 Xbox division employees, including staff at acquired companies like Activision Blizzard and ZeniMax. A subsequent September layoff impacted 650 corporate and support employees at Activision Blizzard.

A Business Insider report (via GamesIndustry.biz) now suggests another round of layoffs. While a Microsoft spokesperson confirmed the cuts, the precise number of affected employees remains unconfirmed and described as "a small number." These latest cuts are unrelated to the earlier January layoffs, which reportedly focused on underperforming staff not directly involved with Xbox.

The Broader Context of Microsoft's Layoffs

Microsoft's ongoing layoffs are particularly notable 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 criticism from the FTC, which initially attempted to use the Activision Blizzard layoffs as a reason to block or reverse Microsoft's acquisition of the Call of Duty publisher.

Previous Microsoft layoffs have impacted Xbox's retail teams, a large portion of Blizzard's customer service, and internal development studios such as Sledgehammer Games and Toys for Bob. Blizzard's unannounced survival game, codenamed Project Odyssey, was also canceled.

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