Microsoft Layoffs Continue: More Employees Affected

Microsoft Announces New Layoffs Across Gaming, Security, and Sales Divisions

Microsoft has reportedly let go of additional employees within its gaming, security, and sales divisions. The exact number of affected staff remains unknown. These latest job cuts are separate from an earlier round of reductions announced in January.

Continued Challenges in the Video Game Industry

The past few years have been particularly tough for video game industry workers, with major companies including Microsoft announcing large-scale layoffs in 2024. The affected studios span from well-known developers to independent teams. Recent cuts include staff from IllFonic, the studio behind Predator: Hunting Grounds, and People Can Fly, creators of Outriders. Earlier this month, Rocksteady also confirmed another round of layoffs following the mixed reception of Suicide Squad: Kill the Justice League.

Microsoft’s Ongoing Workforce Adjustments

One of the largest companies impacted by recent layoffs is Microsoft, which has been reducing its Xbox-related workforce since early 2024. In January, the company announced the departure of 1,900 employees from its Xbox division, including staff at acquired studios such as Activision Blizzard and ZeniMax. In September, an additional 650 employees were laid off from corporate and support roles at Activision Blizzard.

Latest Reports Suggest Another Round of Cuts

A new report from Business Insider, citing GamesIndustry.biz, indicates that another round of layoffs may have already occurred at Microsoft. A company spokesperson confirmed that a small number of employees would be affected, though no specific figure was provided. These new reductions are not linked to a previous set of cuts announced earlier this month, which targeted underperforming staff not directly tied to Xbox.

Impact on Xbox and Future Outlook

Microsoft’s continuing series of workforce reductions is especially notable given its recent acquisitions of major game publishers, including Bethesda and Activision Blizzard. The company also reached $3 trillion in market value shortly after the large January 2024 layoffs. That initial round prompted concerns from the FTC, which initially considered using the Activision Blizzard layoffs as a basis to block or reverse Microsoft’s high-profile acquisition of the Call of Duty publisher.

Previous layoffs have affected Xbox’s physical retail teams, most of Blizzard’s customer support staff, and in-house development teams such as Sledgehammer Games and Toys for Bob. Additionally, Blizzard’s unnamed survival game, codenamed Project Odyssey, was canceled during this period. The exact number of employees impacted by the latest layoffs remains unconfirmed, and the full effect on the Xbox gaming division is still unclear.