Microsoft Reportedly Lays Off More Employees

Microsoft's Recent Layoffs Continue Across Multiple Divisions

Reports indicate that Microsoft has conducted another round of layoffs, impacting employees across its gaming, security, and sales divisions. The exact number of affected employees remains undisclosed. Crucially, these job cuts are separate from a previous layoff announcement earlier in January.

The gaming industry has faced significant challenges in recent years, with numerous companies, including Microsoft, implementing substantial 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 recently announced layoffs following the mixed reception of Suicide Squad: Kill the Justice League.

Microsoft's own restructuring began earlier in 2024 with the announced dismissal of 1,900 Xbox division employees, encompassing staff from acquired companies like Activision Blizzard and ZeniMax. Further cuts in September affected 650 corporate and support personnel at Activision Blizzard.

A Business Insider report (via GamesIndustry.biz) suggests a new wave of layoffs, though a Microsoft spokesperson stated the impact would be limited to a small number of employees, without providing specifics. These latest cuts are unrelated to earlier January layoffs focused on underperforming workers 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 like Bethesda and Activision Blizzard, and its achievement of a $3 trillion market valuation shortly after the initial January 2024 layoffs. The initial round of cuts prompted complaints from the FTC, which attempted to leverage them to obstruct Microsoft's acquisition of Activision Blizzard.

Previous Microsoft layoffs targeted Xbox's 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, Project Odyssey, was also canceled. The full extent of the latest layoffs remains unconfirmed, and their impact on the Xbox division is yet to be determined.