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 been facing challenging times, with numerous companies, including Microsoft, announcing significant layoffs throughout 2024. These layoffs have impacted both large-scale developers and smaller indie studios. Recent examples include IllFonic, the developer behind Predator: Hunting Grounds, and People Can Fly, known for Outriders. Additionally, Rocksteady, following the mixed reception of Suicide Squad: Kill the Justice League, also announced layoffs earlier this month.
Microsoft's layoffs began at the start of 2024, with the company announcing the termination of 1,900 staff members from its Xbox gaming division in January. This included employees from recently acquired subsidiaries such as Activision Blizzard and ZeniMax. In September, another 650 employees were let go from corporate and support roles at Activision Blizzard.
According to a recent report from Business Insider (via GamesIndustry.biz), Microsoft may have 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. These latest layoffs are unrelated to an earlier round announced in January, which targeted underperforming employees not necessarily connected to the Xbox division.
Microsoft Could Be Laying Off More Xbox Employees
Microsoft's series of layoffs is particularly significant given the company's recent acquisitions of major publishers like Bethesda and Activision Blizzard. This comes shortly after Microsoft achieved a $3 trillion market valuation following the substantial January 2024 layoffs. The initial wave of cuts led to scrutiny from the FTC, which attempted to use the layoffs at Activision Blizzard as a reason to block or reverse Microsoft's merger with the Call of Duty publisher.
Previous layoffs at Microsoft affected various teams, 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 as a result of these layoffs. The exact number of employees affected by the latest reported layoffs remains unconfirmed, leaving the potential impact on the Xbox gaming division uncertain.
