Microsoft's Recent Layoffs Continue to Impact Gaming, Security, and Sales Divisions
Reports indicate that Microsoft has conducted another round of 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 previous layoff announcements made earlier in January and earlier this month.
The gaming industry has experienced significant turbulence in recent years, with numerous companies, including Microsoft, implementing substantial workforce reductions in 2024. This has affected both large studios and smaller independent developers. Recent examples include layoffs at IllFonic (Predator: Hunting Grounds) and People Can Fly (Outriders), as well as Rocksteady's recent cuts following the mixed reception of Suicide Squad: Kill the Justice League.
Microsoft's own restructuring began early in 2024, with a January announcement of 1,900 job losses within its Xbox gaming division, encompassing employees at acquired companies like Activision Blizzard and ZeniMax. Further cuts in September impacted 650 corporate and support staff at Activision Blizzard.
A Business Insider report (via GamesIndustry.biz) now suggests another, smaller round of layoffs. While a Microsoft spokesperson confirmed the cuts, the precise number of affected employees remains unconfirmed. These latest reductions are distinct from the earlier January layoffs, which reportedly focused on underperforming staff outside the Xbox division.
The Broader Context of Microsoft's Layoffs
Microsoft's ongoing restructuring is particularly noteworthy given its recent acquisitions of major publishers such as Bethesda and Activision Blizzard, and its achievement of a $3 trillion market valuation shortly after the significant January 2024 layoffs. The initial wave of job cuts drew scrutiny from the FTC, which attempted to use them as a basis to challenge or reverse Microsoft's acquisition of Activision Blizzard.
Previous Microsoft layoffs have impacted various areas, including Xbox's physical retail teams, a large portion of Blizzard's customer service team, and internal development studios like Sledgehammer Games and Toys for Bob. The cancellation of Blizzard's unannounced survival game, codenamed Project Odyssey, was also linked to these workforce reductions.
The extent of the impact of this latest round of layoffs on Microsoft's Xbox gaming division and the overall number of affected employees remains to be seen.
