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

Microsoft has reportedly laid off more employees across its gaming, security, and sales divisions, continuing a trend of significant workforce reductions in the video game industry throughout 2024. This year has been challenging for game developers, with major and indie studios alike facing layoffs. Notable examples include IllFonic, the developer behind Predator: Hunting Grounds, and People Can Fly, known for Outriders. Additionally, Rocksteady recently announced layoffs following the mixed reception of Suicide Squad: Kill the Justice League.

Microsoft, one of the largest companies affected by these layoffs, has been cutting back on its Xbox workforce since early 2024. In January, Microsoft announced the layoff of 1,900 employees from its Xbox gaming division, including staff from recently acquired subsidiaries like Activision Blizzard and ZeniMax. Later, in September, Microsoft laid off 650 more employees from corporate and support roles at Activision Blizzard.

According to a report from Business Insider (via GamesIndustry.biz), Microsoft has conducted another round of layoffs. A spokesperson mentioned that these cuts would affect a small number of staff members, though the exact number remains unspecified. Importantly, these latest layoffs are separate from an earlier round of cuts announced earlier in January, which focused on underperforming employees not necessarily tied to the Xbox division.

Microsoft's ongoing layoffs are particularly notable given its recent acquisitions of major publishers like Bethesda and Activision Blizzard, as well as the company reaching a $3 trillion market value shortly after the January 2024 layoffs. The initial wave of layoffs led to scrutiny from the FTC, which attempted to use the layoffs at Activision Blizzard as leverage to block or reverse Microsoft's acquisition of the Call of Duty publisher.

Previous Microsoft layoffs have impacted various sectors of the company, 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 amid these layoffs. The full impact of the latest layoffs on the Xbox gaming division remains uncertain, as the number of affected employees has not been disclosed.