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Microsoft Hit by Yet More Layoffs Across Gaming and Other Divisions

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Published: January 15, 2025 9:43 AM

Yet another round of layoffs has hit Microsoft, affecting employees working at the tech giant's gaming division, as well as two of its other divisions.

A report by Business Insider (which is paywalled; we're using additional reporting by GamesIndustry.biz) cites a spokesperson as saying that a small number of Microsoft employees would be affected, although the spokesperson stopped short of saying how many constitutes that small number.

Given that Microsoft is a massive company that employs hundreds of thousands of people, a small number could refer to tens of employees, a few hundred, or even a few thousand; anything short of thousands and thousands of employees being laid off would likely be a drop in the ocean for Microsoft.

A plane about to take off with orange smoke in the background in Microsoft Flight Simulator 2024
Microsoft's latest round of layoffs affect employees in gaming, as well as other divisions.

In addition to the gaming division, the latest layoffs also affect employees in Microsoft's security and sales departments, although we don't know what proportion of employees were laid off across each division.

As noted by GI.biz, the spokesperson said that these layoffs weren't related to performance-based job cuts announced last week, so it doesn't sound like these employees are being let go because their performance is unsatisfactory (or not solely because of that, anyway).

Back in January last year, Microsoft apparently laid off almost 2,000 staff solely from its gaming division, with Xbox head Phil Spencer reportedly claiming the cuts were part of reaching a "sustainable cost structure" to support Xbox's "growing business".

Of course, those layoffs didn't prevent CEO Satya Nadella from scoring a payrise to the tune of tens of millions of dollars. Perish the thought that the C-suite could perhaps absorb some of the cost when it comes to considering layoffs.

The player aiming a gun at a Mancubus enemy in Doom: The Dark Ages
Microsoft is gearing up for a new Xbox presentation next week.

Elsewhere in Microsoft-related gaming news, a new Xbox Developer Direct is set to air next week.

It'll feature looks at games like Doom: The Dark Ages and South of Midnight, as well as a reveal for a brand new game, although reports suggest that game won't be the long-rumored Oblivion remake.

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Joe has been writing for TechRaptor for several years, and in those years has learned a lot about the gaming industry and its foibles. He’s originally an… More about Joseph