Microsoft Stirs the Waters: A Fresh Wave of Layoffs Hits Gaming and Beyond

Microsoft has reportedly conducted another series of layoffs, this time impacting a “small” group of staff across its security, experiences and devices, sales, and gaming sectors.

That’s as per Business Insider, which – referencing “individuals knowledgeable about the situation” – states affected personnel were informed of the layoffs on Tuesday. A spokesperson for Microsoft conveyed to the publication that a “small” number of positions had been eliminated, but did not disclose a specific number. It also indicated that this action was not linked to recent job eliminations aimed at underperforming staff.

This announcement comes after multiple rounds of layoffs at Microsoft over the past year. In January 2024, the corporation declared it was reducing its workforce by 1900 within its gaming division, with an additional 650 reductions made in September. Eurogamer understands that Microsoft’s latest layoffs have affected a limited number of gaming staff, but that the division was not the primary focus.

In response to a request for clarification regarding Business Insider’s claims, a Microsoft spokesperson informed Eurogamer, “Organizational and workforce changes are an necessary and consistent aspect of managing our operations. We will persist in prioritizing and investing in strategic growth sectors for our future as well as for the benefit of our customers and partners.”

Microsoft’s recent layoffs follow a challenging 2024 for the gaming industry, where approximately 13000 workers are believed to have been laid off. These layoffs have persisted into the new year, with numerous job eliminations reported amid studio closures. Last year, Chris Dring shared his insights with Eurogamer regarding the reasons behind these layoffs.