Microsoft has started 2025 with a new round of layoffs, mirroring the company’s actions at the beginning of 2024. According to a report from Business Insider, employees across Microsoft’s sales, security, and gaming teams received notifications of their job losses earlier this week. While the company has described these layoffs as “small,” it has not disclosed the exact number of employees affected.
Ongoing Layoffs in Microsoft’s Gaming Division
This development follows significant job cuts throughout 2024. In January of last year, Microsoft laid off 1,900 employees from its gaming division shortly after completing its acquisition of Activision Blizzard. Further cuts occurred in September 2024, when 650 employees were let go, and in May, when four studios were closed, including Arkane Austin and Tango Gameworks. Notably, Tango Gameworks was later purchased by Krafton and relaunched under new management.
The Wider Impact on the Gaming Industry
The gaming industry as a whole has been deeply affected by layoffs in recent years. In 2024, nearly 16,000 employees lost their jobs across more than 160 companies, reflecting widespread challenges in the sector. The trend has continued into 2025, with 10 known layoffs and studio closures occurring within the first 15 days of the year. Over 200 employees are estimated to have been impacted so far, highlighting ongoing turbulence in the industry.
Industry Uncertainty in 2025
The current wave of layoffs raises questions about what the rest of 2025 holds for the gaming sector. Last year’s job cuts were attributed to various factors, including economic pressures, restructuring efforts, and shifting market dynamics. This year, it remains to be seen whether these challenges will persist or if the industry will find more stability.
Key Points
- Microsoft begins 2025 with new layoffs, affecting sales, security, and gaming teams.
- The company described these cuts as “small” but has not disclosed exact numbers.
- Microsoft laid off 1,900 gaming division employees in January 2024 after acquiring Activision Blizzard.
- Additional layoffs in 2024 included 650 employees in September and the closure of four studios in May.
- Nearly 16,000 gaming industry workers lost their jobs in 2024, across 160 companies.
- Over 200 gaming industry employees have been impacted by layoffs in the first two weeks of 2025.