Microsoft is kicking off the year the same way it did 2024, holding layoffs across the company. According to a new report from Business Insider, Microsoft is letting go people from its sales, security, and gaming teams.
Business Insider sources say that employees started getting notifications of the layoffs on Tuesday. Microsoft told the outlet that the layoffs “are small” while not giving information on the number of cuts.
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Insider Gaming has reached out to Microsoft about the exact number of people being let go from the gaming division in this latest round of layoffs. As of publishing, no response has been received.
In January 2024, Microsoft let go 1,900 people from its gaming team after it closed on its purchase of Activision Blizzard. More layoffs were held throughout the year via studio closures and other mass layoffs, including 650 people in September 2024. The company even shut down four studios in May 2024, including Arkane Austin and Tango Gameworks. Tango Gameworks, however, would ultimately be purchased by Krafton and relaunched.
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Last year saw nearly 16,000 people let go from their jobs in the games industry across more than 160 companies. In the first 15 days of 2025, there have been 10 known layoffs and closures with at least 160+ people let go based on known numbers. With estimates, we are looking at well over 200 people thus far.
What do you think 2025 holds for the games industry after the last two years of mass layoffs? Let us know down below, and join more discussions in the official Insider Gaming forums.
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