Microsoft's Recent Layoffs Continue Across Multiple Divisions
Reports indicate that Microsoft has conducted further 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 a previous round of layoffs announced earlier in January.
The gaming industry has experienced significant turbulence in recent years, with numerous companies, including Microsoft, implementing substantial workforce reductions in 2024. This wave of layoffs has affected both large studios and smaller independent developers, with recent examples including IllFonic (Predator: Hunting Grounds) and People Can Fly (Outriders). Rocksteady also recently announced layoffs following the mixed reception of Suicide Squad: Kill the Justice League.
Microsoft's own restructuring began in early 2024. In January, the company announced the termination of 1,900 Xbox division employees, including staff at acquired subsidiaries 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 the spokesperson stated these layoffs are unrelated to the earlier January cuts focused on underperforming employees outside the Xbox division.
Microsoft's Layoff Impact and Acquisitions
The ongoing layoffs are particularly noteworthy given Microsoft's recent acquisitions of major publishers like Bethesda and Activision Blizzard, and the fact that the company achieved a $3 trillion market valuation shortly after the significant January 2024 layoffs. These initial cuts prompted complaints from the FTC, which attempted to use them as justification to block or reverse Microsoft's acquisition of Activision Blizzard.
Previous Microsoft layoffs have affected various areas, including Xbox's physical retail teams, much 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 full impact of this latest round of layoffs on the Xbox gaming division remains to be seen.
