Microsoft Reportedly Lays Off More Employees

Microsoft's Recent Layoffs Continue to Impact Gaming, Security, and Sales Divisions

Reports indicate further job cuts at Microsoft, affecting its gaming, security, and sales departments. The exact number of employees impacted remains undisclosed. Crucially, these layoffs are separate from earlier cuts announced in January and more recently this month, suggesting a distinct, ongoing restructuring.

The gaming industry has faced significant challenges in recent years, with numerous companies, including Microsoft, implementing substantial layoffs throughout 2024. High-profile studios and smaller independent developers have all experienced job losses, with recent examples including IllFonic (Predator: Hunting Grounds) and People Can Fly (Outriders). Rocksteady's post-Suicide Squad: Kill the Justice League layoffs further highlight the sector's instability.

Microsoft's own workforce reductions began in early 2024. A January announcement detailed the termination of 1,900 Xbox division employees, encompassing staff from acquired companies like Activision Blizzard and ZeniMax. September saw an additional 650 corporate and support staff laid off at Activision Blizzard.

Business Insider, citing GamesIndustry.biz, reports a new round of Microsoft layoffs. While a Microsoft spokesperson confirmed the cuts, the precise number remains confidential. These latest reductions are distinct from the earlier performance-based layoffs.

Further Implications for Xbox

Microsoft's ongoing restructuring is particularly noteworthy given its acquisitions of Bethesda and Activision Blizzard, and its achieving a $3 trillion market valuation shortly after the significant January 2024 layoffs. The initial wave of job cuts drew FTC scrutiny, with the regulator initially attempting to use the Activision Blizzard layoffs as leverage against the Microsoft-Activision merger.

Previous Microsoft layoffs have impacted Xbox's retail operations, Blizzard's customer service, and internal development teams like Sledgehammer Games and Toys for Bob. Project Odyssey, an unnamed Blizzard survival game, was also canceled. The scale and ultimate effect of these latest layoffs on the Xbox division remain uncertain.