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 implemented another round of layoffs affecting 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 throughout 2024. These cuts have impacted both large studios and smaller indie developers, with recent examples including IllFonic, known for Predator: Hunting Grounds, and People Can Fly, the studio behind Outriders. Additionally, Rocksteady recently announced layoffs following the mixed reception of Suicide Squad: Kill the Justice League.

Microsoft, a major player in the industry, has been reducing its Xbox workforce since early 2024. In January, the company announced the layoff of 1,900 employees from its Xbox gaming division, including staff at subsidiaries like Activision Blizzard and ZeniMax. Another 650 employees were let go in September 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 for Microsoft indicated that these latest cuts would affect a small number of staff members, though specific numbers were not disclosed. These layoffs are distinct from an earlier round announced in January, which focused on underperforming employees not necessarily connected to the Xbox division.

Microsoft Could Be Laying Off More Xbox Employees

Microsoft's series of layoffs is particularly significant given its recent acquisitions of major publishers such as Bethesda and Activision Blizzard, as well as the news that the company reached a $3 trillion market valuation shortly after the extensive January 2024 layoffs. This initial wave of cuts prompted complaints from the FTC, which attempted to use the layoffs at Activision Blizzard as leverage to challenge or reverse Microsoft's high-profile merger with the Call of Duty publisher.

Previous Microsoft layoffs have also affected Xbox's physical retail teams, most of Blizzard's customer service team, and in-house developers such as Sledgehammer Games and Toys for Bob. The cancellation of Blizzard's survival game, codenamed Project Odyssey, followed these layoffs. The exact number of employees affected by the latest reported layoffs remains undisclosed, leaving uncertainty about the potential impact on the Xbox gaming division.