Microsoft Lays Off More Staff: Report

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 unconnected to a previous round of cuts announced earlier in January.

Microsoft has reportedly initiated another round of layoffs affecting its gaming, security, and sales divisions. The past few years have been challenging for the video game industry, with numerous companies, including Microsoft, announcing significant layoffs in 2024. Affected studios range from big-name developers to smaller indie companies. Recent examples include 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 following the game's mixed reception.

Microsoft's layoffs began at the start of 2024, with the company announcing in January that 1,900 staff members from its Xbox gaming division would be let go. This included employees from newly acquired subsidiaries like Activision Blizzard and ZeniMax. In September, another 650 employees were laid off from corporate and support roles at Activision Blizzard.

A recent report from Business Insider, cited by GamesIndustry.biz, suggests that Microsoft may have conducted another round of layoffs. A Microsoft spokesperson mentioned that these latest cuts would impact a small number of staff members, though specific numbers were not disclosed. These layoffs are separate from an earlier round announced in January, which focused on underperforming employees not necessarily tied to Xbox.

Microsoft Could Be Laying Off More Xbox Employees

Microsoft's ongoing layoffs are particularly significant given its recent acquisitions of major publishers like Bethesda and Activision Blizzard, as well as the news that the company reached a $3 trillion market valuation shortly after the January 2024 layoffs. These initial cuts led to complaints from the FTC, which attempted to use the layoffs at Activision Blizzard as a basis to challenge Microsoft's merger with the Call of Duty publisher.

Previous Microsoft layoffs have impacted various sectors, including Xbox’s physical retail teams, most of Blizzard’s customer service team, and in-house developers such as Sledgehammer Games and Toys for Bob. Additionally, Blizzard’s survival game, codenamed Project Odyssey, was canceled following these layoffs. The exact number of employees affected by the most recent layoffs remains unconfirmed, and the potential impact on the Xbox gaming division is still uncertain.