Massive Microsoft Layoffs Continue

Microsoft's Recent Layoffs Continue Across Multiple Divisions

Reports indicate that Microsoft has conducted another round of layoffs, affecting employees across its gaming, security, and sales departments. The exact number of employees impacted remains undisclosed. Importantly, these job cuts are separate from previous layoff announcements made earlier in January and more recently.

The gaming industry has faced significant challenges in recent years, with numerous companies, including Microsoft, implementing substantial workforce reductions in 2024. This trend has impacted 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 experienced several rounds of layoffs since the beginning of 2024. In January, the company announced the termination 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 at Microsoft. While a spokesperson confirmed the cuts, the precise number of employees affected remains unconfirmed, and the company stated that these layoffs are unrelated to previous performance-based reductions.

The Impact 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 significant January 2024 layoffs. The initial wave of job cuts drew scrutiny from the FTC, which attempted to use the Activision Blizzard layoffs as a reason to block or reverse Microsoft's merger with the Call of Duty publisher.

Previous Microsoft layoffs have impacted various areas, including Xbox's physical retail teams, a large portion of Blizzard's customer service team, and internal development studios such as Sledgehammer Games and Toys for Bob. The cancellation of Blizzard's unannounced survival game, codenamed Project Odyssey, also followed these reductions. The full extent of the latest layoffs and their consequences for the Xbox gaming division remain uncertain.