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 recently implemented another round of layoffs affecting employees in its gaming, security, and sales divisions. The past few years have been challenging for the video game industry, with numerous companies, including Microsoft, announcing significant layoffs in 2024. These cuts have impacted both large developers and smaller indie studios. Notable recent layoffs include those at IllFonic, the developer behind Predator: Hunting Grounds, and People Can Fly, known for Outriders. Additionally, Rocksteady faced layoffs following the mixed reception to Suicide Squad: Kill the Justice League.
Microsoft, in particular, has been trimming its Xbox workforce since the beginning of 2024. In January, the company announced the layoff of 1,900 staff members from its Xbox gaming division, including employees at acquired subsidiaries like Activision Blizzard and ZeniMax. In September, another 650 employees were let go from corporate and support roles at Activision Blizzard.
According to a report from Business Insider (via GamesIndustry.biz), Microsoft has now conducted another round of layoffs. Although a spokesperson indicated that these latest cuts would affect a small number of staff, the exact number of employees impacted remains unspecified. Importantly, these new layoffs are separate from an earlier round announced in January, which targeted underperforming workers not necessarily connected to Xbox.
Microsoft Could Be Laying Off More Xbox Employees
The ongoing layoffs at Microsoft are particularly significant given the company's recent acquisitions of major publishers like Bethesda and Activision Blizzard, and its achievement of a $3 trillion market value shortly after the massive January 2024 layoffs. These initial cuts drew criticism from the FTC, which attempted to use the layoffs at Activision Blizzard as a basis to challenge Microsoft's merger with the Call of Duty publisher.
Previous Microsoft layoffs have also affected 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 following these layoffs. The exact number of employees affected by the most recent layoffs and their potential impact on the Xbox gaming division are still unknown.
