Layoffs Surge As Microsoft Cuts Staff

Microsoft's Recent Layoffs Continue Across Multiple Divisions

Reports indicate that Microsoft has conducted further layoffs, impacting employees across its gaming, security, and sales divisions. The exact number of affected employees remains undisclosed. Crucially, these job cuts are separate from previous rounds of layoffs announced earlier in January and more recently.

The gaming industry has experienced significant workforce reductions in 2024, with numerous companies, both large and small, implementing substantial layoffs. Recent examples include IllFonic (Predator: Hunting Grounds) and People Can Fly (Outriders). Rocksteady also announced layoffs following the mixed reception of Suicide Squad: Kill the Justice League.

Microsoft's own workforce reductions began in early 2024. A significant January layoff impacted 1,900 Xbox division employees, including those at acquired studios like Activision Blizzard and ZeniMax. A subsequent September round resulted in 650 more layoffs within Activision Blizzard's corporate and support teams.

Business Insider (via GamesIndustry.biz) reports another, smaller round of layoffs at Microsoft. While a spokesperson confirmed the cuts, the precise number of affected employees remains unannounced. These latest reductions are unrelated to the earlier performance-based layoffs.

The Broader Context of Microsoft's Layoffs

Microsoft's ongoing layoffs are particularly notable given its recent acquisitions of major publishers like Bethesda and Activision Blizzard, and its achievement of a $3 trillion market valuation shortly after the large-scale January 2024 layoffs. The initial wave of cuts drew scrutiny from the FTC, which attempted to use them to oppose or reverse Microsoft's acquisition of Activision Blizzard.

Previous Microsoft layoffs have affected various teams, including Xbox's physical retail staff, most of Blizzard's customer service, 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 impact of the latest reported layoffs on the Xbox division remains unclear, pending confirmation of the affected employee count.