Microsoft Layoffs Continue: More Employees Let Go

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 widespread layoffs across the video game industry in 2024. This year has been particularly challenging for game developers, with major companies and indie studios alike facing significant staff reductions. Notable examples include IllFonic, the developer behind Predator: Hunting Grounds, and People Can Fly, known for Outriders. Additionally, Rocksteady recently announced layoffs following the mixed reception of Suicide Squad: Kill the Justice League.

Microsoft, one of the industry giants, has been cutting back on its Xbox workforce since the beginning of 2024. In January, the company announced the layoff of 1,900 employees from its Xbox gaming division, affecting staff at subsidiaries like Activision Blizzard and ZeniMax. Another round of layoffs in September impacted 650 employees, primarily from corporate and support roles at Activision Blizzard.

According to a recent report from Business Insider (via GamesIndustry.biz), Microsoft may have initiated another round of layoffs. A spokesperson mentioned that these cuts would affect a small number of staff members, though the exact number remains unspecified. Importantly, these layoffs are separate from an earlier round announced in January, which focused on underperforming employees not necessarily linked to Xbox.

Microsoft Could Be Laying Off More Xbox Employees

Microsoft's ongoing layoffs are particularly significant given its recent acquisitions of major publishers like Bethesda and Activision Blizzard, as well as the company reaching a $3 trillion market value shortly after the January 2024 layoffs. The initial layoffs at Activision Blizzard led to complaints from the FTC, which attempted to use these layoffs as a basis to challenge Microsoft's merger with the Call of Duty publisher.

Previous layoffs at Microsoft have affected 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. Blizzard's survival game, codenamed Project Odyssey, was also canceled amid these layoffs. The number of employees impacted by the latest reported layoffs has yet to be confirmed, leaving the potential effects on the Xbox gaming division uncertain.