Microsoft's Recent Layoffs Continue Across Multiple Divisions
Reports indicate that Microsoft has conducted another round of layoffs, impacting employees across its gaming, security, and sales divisions. The exact number of affected employees remains undisclosed. Importantly, these job cuts are separate from previous layoff announcements made earlier in January and later in September of 2024.
The gaming industry has experienced significant upheaval in recent years, with numerous companies, including Microsoft, implementing substantial workforce reductions. This trend has affected both large studios and smaller independent developers. Recent examples include layoffs at IllFonic (Predator: Hunting Grounds) and People Can Fly (Outriders), as well as Rocksteady's job cuts following the mixed reception of Suicide Squad: Kill the Justice League.
Microsoft's own restructuring began in early 2024, with a notable January announcement of 1,900 job losses within its Xbox gaming division, encompassing employees from acquired companies like Activision Blizzard and ZeniMax. A subsequent September layoff impacted 650 corporate and support staff at Activision Blizzard.
According to a Business Insider report (via GamesIndustry.biz), a new wave of layoffs has occurred. While a Microsoft spokesperson confirmed the cuts, the precise number of affected employees remains unconfirmed. The company emphasized that these layoffs are unrelated to the earlier January cuts, which reportedly focused on underperforming employees outside the Xbox division.
The Broader Context of Microsoft's Layoffs
Microsoft's ongoing layoffs are significant, particularly considering its recent acquisitions of major publishers like Bethesda and Activision Blizzard, and its achievement of a $3 trillion market valuation shortly after the substantial January 2024 layoffs. These initial cuts drew scrutiny from the FTC, which attempted to use them as a reason to block or reverse Microsoft's acquisition of Activision Blizzard.
Previous Microsoft layoffs have also impacted Xbox's retail teams, a large portion of Blizzard's customer service, and internal development studios such as Sledgehammer Games and Toys for Bob. The cancellation of Blizzard's unannounced survival game, codenamed Project Odyssey, was also linked to these workforce reductions.
The impact of this latest round of layoffs on the Xbox gaming division remains uncertain, pending confirmation of the number of affected employees.
