Microsoft's Recent Layoffs: Further Cuts Across Multiple Divisions
Reports indicate that Microsoft has conducted additional layoffs impacting its gaming, security, and sales divisions. The exact number of employees affected remains undisclosed. Importantly, these job cuts are separate from a previous round of layoffs announced earlier in January.
The gaming industry has experienced 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 itself has been streamlining its Xbox workforce since the beginning of 2024. A significant layoff event in January 2024 resulted in the loss of 1,900 jobs within the Xbox gaming division, including employees at acquired companies like Activision Blizzard and ZeniMax. Further cuts in September impacted 650 corporate and support staff at Activision Blizzard.
A new report from Business Insider (via GamesIndustry.biz) suggests another round of layoffs has occurred. While a Microsoft spokesperson confirmed the cuts, they declined to specify the number of employees affected, stating it was a relatively small number. These latest reductions are distinct from the earlier January layoffs, which reportedly targeted underperforming employees not necessarily connected to Xbox.
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 January 2024 layoffs. The initial wave of layoffs drew scrutiny from the FTC, which attempted to use them as a reason to block or reverse Microsoft's acquisition of Activision Blizzard.
Previous Microsoft layoffs have impacted various areas, including Xbox's physical retail teams, much of Blizzard's customer service, and internal development studios such as Sledgehammer Games and Toys for Bob. Blizzard's unannounced survival game, codenamed Project Odyssey, was also canceled. The impact of these latest layoffs on the Xbox gaming division remains uncertain, pending confirmation of the number of employees affected.
