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 initiated another round of layoffs affecting employees in its gaming, security, and sales divisions. The video game industry has faced significant challenges in recent years, with numerous companies, including Microsoft, announcing substantial layoffs in 2024. This wave of layoffs has impacted both major developers and smaller indie studios, such as IllFonic, known for Predator: Hunting Grounds, and People Can Fly, the studio behind Outriders. Earlier this month, Rocksteady also announced layoffs following the mixed reception of Suicide Squad: Kill the Justice League.

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

According to a recent report from Business Insider, via GamesIndustry.biz, Microsoft has conducted another round of layoffs. A Microsoft spokesperson stated that these latest cuts would impact a small number of staff members, though specific numbers were not disclosed. These new layoffs are separate from an earlier round of cuts announced earlier in the month, which targeted underperforming employees not necessarily connected to Xbox.

Microsoft Could Be Laying Off More Xbox Employees

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

Previous Microsoft layoffs have affected various sectors, including Xbox’s physical retail teams, most of Blizzard’s customer service team, and in-house developers like Sledgehammer Games and Toys for Bob. Additionally, Blizzard’s survival game, codenamed Project Odyssey, was canceled due to these layoffs. The exact number of employees affected by the latest reported layoffs remains undisclosed, leaving the potential impact on the Xbox gaming division uncertain.