Microsoft's Recent Layoffs Continue to Impact Gaming, Security, and Sales
Reports indicate that Microsoft has conducted further layoffs, affecting employees across its gaming, security, and sales divisions. The exact number of employees impacted remains undisclosed. Importantly, these job cuts are separate from a previous round of layoffs announced earlier in January.
The gaming industry has experienced considerable turmoil in recent years, with numerous companies, including Microsoft, implementing significant workforce reductions in 2024. This trend 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 itself has been streamlining its Xbox workforce since the beginning of 2024. A substantial layoff of 1,900 Xbox division employees occurred in January, encompassing staff from acquired companies like Activision Blizzard and ZeniMax. A subsequent round of 650 layoffs in September targeted corporate and support roles within Activision Blizzard.
A new report from Business Insider (via GamesIndustry.biz) suggests another round of layoffs has occurred. While a Microsoft spokesperson confirmed the cuts, the precise number of affected employees remains unannounced. These latest reductions are unrelated to the earlier January layoffs, which reportedly focused on underperforming employees not directly linked to Xbox.
The Broader Context of Microsoft's Layoffs
Microsoft's ongoing restructuring is 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 January 2024 layoffs. The initial wave of layoffs 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 significant 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 scale and impact of the latest layoffs on the Xbox gaming division remain uncertain, pending confirmation of the number of affected employees.
