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 additional employees across its gaming, security, and sales divisions, adding to the challenges faced by the video game industry in recent years. In 2024 alone, numerous companies, including Microsoft, have announced significant layoffs. These cuts have affected a wide range of studios, from major developers to smaller indie teams. Recent examples include layoffs at IllFonic, the developer behind Predator: Hunting Grounds, and People Can Fly, known for Outriders. Earlier this month, Rocksteady also announced layoffs following the mixed reception of Suicide Squad: Kill the Justice League.
Microsoft, one of the largest companies affected by these layoffs, has been reducing its Xbox workforce since early 2024. In January, Microsoft announced the layoff of 1,900 staff members from its Xbox gaming division, including employees at newly acquired subsidiaries like Activision Blizzard and ZeniMax. Additionally, in September, 650 employees were let go from corporate and support roles at Activision Blizzard.
A new report from Business Insider, cited by GamesIndustry.biz, suggests that Microsoft may have initiated another round of layoffs. A Microsoft spokesperson confirmed these latest cuts would affect a small number of staff members, though the exact number remains unspecified. Importantly, these layoffs are separate from an earlier round of cuts announced earlier in January, which targeted underperforming workers not necessarily connected to the Xbox division.
Microsoft Could Be Laying Off More Xbox Employees
Microsoft's recent layoffs are particularly notable given the company's high-profile acquisitions of publishers like Bethesda and Activision Blizzard, as well as its achievement of reaching a $3 trillion market value shortly after the significant January 2024 layoffs. These initial cuts led to scrutiny from the FTC, which attempted to use the layoffs at Activision Blizzard as a basis to challenge or reverse Microsoft's merger with the Call of Duty publisher.
Previous Microsoft layoffs have impacted various sectors, including Xbox’s physical retail teams, most of Blizzard’s customer service team, and in-house developers like Sledgehammer Games and Toys for Bob. Additionally, Blizzard’s survival game, codenamed Project Odyssey, was canceled amid these layoffs. The number of employees affected by the latest reported layoffs at Microsoft has yet to be confirmed, leaving the potential impact on the Xbox gaming division uncertain.
