Microsoft Lays Off More Staff: Reports

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 announced yet another round of layoffs affecting its gaming, security, and sales divisions. The video game industry has been facing significant challenges, with numerous companies, including Microsoft, implementing substantial layoffs throughout 2024. Notable studios such as IllFonic, known for Predator: Hunting Grounds, and People Can Fly, the creators of Outriders, have been among those affected. Additionally, Rocksteady Studios experienced layoffs following the mixed reception of Suicide Squad: Kill the Justice League.

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

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

Microsoft Could Be Laying Off More Xbox Employees

Microsoft's ongoing layoffs are particularly significant given its recent acquisitions of major publishers like Bethesda and Activision Blizzard. These layoffs coincide with Microsoft reaching a $3 trillion market value shortly after the initial layoffs in January 2024. The first wave of cuts led to scrutiny from the Federal Trade Commission (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 layoffs at Microsoft have impacted 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 number of employees affected by the most recent layoffs and the potential impact on the Xbox gaming division remain uncertain.