Summary

• Microsoft has reportedly laid off more employees across its gaming, security, and sales divisions.
• The exact number of affected employees remains unclear.
• These new layoffs are separate from a previous round of cuts announced earlier in January.

Microsoft has reportedly conducted further layoffs across its gaming, security, and sales divisions. The video game industry has faced significant challenges in recent years, with numerous companies, including Microsoft, announcing substantial layoffs in 2024. These cuts have affected both large developers and smaller indie studios, with recent examples including IllFonic, the developer behind Predator: Hunting Grounds, and People Can Fly, known for Outriders. Additionally, Rocksteady, the studio behind Suicide Squad: Kill the Justice League, announced layoffs earlier this month amid mixed reception to their latest game.

Microsoft, one of the biggest companies affected by these layoffs, has been reducing its Xbox workforce since early 2024. In January, Microsoft revealed plans to lay off 1,900 employees from its Xbox gaming division, including staff at acquired companies like Activision Blizzard and ZeniMax. Later in September, another 650 employees were let go, 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 latest cuts would affect a small number of staff members, though specific numbers were not disclosed. Importantly, these new layoffs are unrelated to an earlier round of cuts announced in January, which targeted underperforming employees not necessarily connected to the Xbox division.

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

Previous layoffs at Microsoft 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 remains unconfirmed, leaving the potential impact on the Xbox gaming division uncertain.