Microsoft Trims Workforce Amid Economic Uncertainty

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 latest cuts are separate from previous layoff announcements in January and earlier this month.

The gaming industry has experienced significant job losses in recent years, with numerous companies, including Microsoft, implementing substantial workforce reductions in 2024. High-profile studios and smaller independent developers have been affected, with recent examples including IllFonic (Predator: Hunting Grounds) and People Can Fly (Outriders). Rocksteady also announced layoffs following the mixed reception of Suicide Squad: Kill the Justice League.

Microsoft's own restructuring began in early 2024. In January, the company announced the termination of 1,900 Xbox division employees, encompassing staff at acquired companies like Activision Blizzard and ZeniMax. Further cuts in September affected 650 corporate and support roles at Activision Blizzard.

A Business Insider report (via GamesIndustry.biz) suggests a new wave of layoffs. While a Microsoft spokesperson confirmed the cuts, the precise number of affected employees remains undisclosed. The spokesperson emphasized that these layoffs are unrelated to the earlier performance-based reductions.

The Impact of Microsoft's Layoffs on Xbox

Microsoft's ongoing layoffs are particularly noteworthy given its recent acquisitions of major publishers like Bethesda and Activision Blizzard, and its achievement of a $3 trillion market valuation shortly after the January 2024 layoffs. The initial round of cuts drew scrutiny from the FTC, which attempted to use the Activision Blizzard layoffs to challenge the Microsoft-Activision merger.

Previous Microsoft layoffs have impacted various areas, including Xbox's physical retail teams, much of Blizzard's customer service, and internal development studios such as Sledgehammer Games and Toys for Bob. Blizzard's unannounced survival game, codenamed Project Odyssey, was also canceled. The extent of the impact of these latest layoffs on the Xbox gaming division remains uncertain.