Microsoft's Recent Layoffs Continue to Impact Gaming, Security, and Sales Divisions
Reports indicate that Microsoft has conducted another round of layoffs, affecting employees across its gaming, security, and sales divisions. The exact number of employees impacted remains undisclosed. Importantly, these job cuts are separate from a previous layoff announcement earlier in January.
The gaming industry has faced significant challenges in recent years, with numerous companies, including Microsoft, implementing substantial workforce reductions in 2024. This includes both large studios and smaller independent developers. Recent examples include layoffs at IllFonic (Predator: Hunting Grounds) and People Can Fly (Outriders), and earlier cuts at Rocksteady following the mixed reception of Suicide Squad: Kill the Justice League.
Microsoft itself has experienced multiple rounds of layoffs since the beginning of 2024. In January, the company announced the termination of 1,900 Xbox division employees, encompassing staff at acquired companies like Activision Blizzard and ZeniMax. Further cuts in September affected 650 corporate and support employees at Activision Blizzard.
A Business Insider report (via GamesIndustry.biz) suggests another, smaller round of layoffs has occurred. While a Microsoft spokesperson confirmed the cuts, the precise number of affected employees remains unconfirmed. These latest layoffs are distinct from earlier cuts targeting underperforming employees outside the Xbox division.
The Broader Context of Microsoft's Layoffs
Microsoft's ongoing layoffs are 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 job cuts 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, 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 layoffs.
The extent of the latest layoffs remains unclear, and their potential impact on the Xbox gaming division is yet to be determined.
