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 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 throughout 2024. These cuts have affected a wide range of studios, from major developers to smaller indie teams. Notable recent layoffs include those at 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, announced another round of layoffs earlier this month.
Microsoft, one of the most prominent companies affected by these layoffs, has been reducing its Xbox workforce since the beginning of 2024. In January, Microsoft revealed plans to lay off 1,900 employees from its Xbox gaming division, including staff at acquired companies like 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 Microsoft spokesperson mentioned that these latest cuts would affect a small number of staff members, though the exact number of affected employees remains unspecified. Importantly, these new layoffs are separate from an earlier round of cuts announced in January, which targeted underperforming workers not necessarily connected to the Xbox division.
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. The layoffs come on the heels of Microsoft reaching a $3 trillion market value shortly after the initial January 2024 layoffs. These earlier cuts prompted the FTC to voice concerns, initially seeking to use the layoffs at Activision Blizzard as a basis to challenge or reverse Microsoft’s high-profile merger with the Call of Duty publisher.
Previous Microsoft layoffs have also 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 amid these layoffs. The full extent of the latest layoffs and their impact on the Xbox gaming division remains uncertain.
