Microsoft Gaming Division Gets Hit With Additional Layoffs

We always hate to hear about layoffs happening within the gaming industry. We’ve seen quite a bit of that, and while we had hoped for a strong turnaround in 2025, there’s another round of layoffs that we have to report on. It looks like Microsoft has just cut additional jobs across multiple divisions. One of the divisions that experienced job cuts is its gaming sector.

Thanks to VGC, we’re learning about the latest round of layoffs. The report originates from Business Insider. According to that report, the divisions that were cut outside of gaming are security and sales. Business Insider continues by stating that after speaking with a Microsoft spokesperson, the job cuts were small and unrelated to underperforming employees.

So, as it stands, we don’t have a specific figure as to how many employees were cut from the company. This came not long after Microsoft had undergone a series of job cuts due to underperforming employees. Likewise, this did not happen long after many employees within the gaming division found jobs were lost.

If you recall, Microsoft cut 1,900 employees early last year after finalizing the Activision Blizzard King merger. You can read about Phil Spencer’s comments on the past year’s mass layoffs.

While this is a blow to Microsoft’s gaming division, there is plenty of focus on their next big presentation event. This month, we’re set to receive the annual Xbox Developer Direct. We already know that South of Midnight, Doom: The Dark Ages, and Clair Obscur: Expedition 33 are being featured. However, one game was kept a secret, and reports suggest this mystery game might be from a legendary Japanese IP. But we’ll have to wait for that presentation to debut on January 23, 2025. Fans can join the stream on Xbox’s Twitch and YouTube channel at 1 PM ET.