Microsoft Announces New Layoffs, Gaming Division Affected

Expert Verified By

Microsoft Laid Off Over 2500 Employees In Gaming Sector Last Year!

Story Highlight
  • Microsoft is laying off more employees across various departments, including security, sales, devices, and gaming.
  • The layoffs come on the heels of last year’s job cuts and raise concerns over the gap between executive pay and workforce reductions.
  • Despite significant investments, Microsoft’s gaming division is affected by the layoffs, indicating that even key growth areas are not immune.

Microsoft has started another round of layoffs affecting staff in security, sales, devices, and gaming departments. This comes after recent job cuts linked to the company’s performance in response to the current economic challenges.

Why it matters: Microsoft’s CEO was able to secure a $30 million raise for himself despite laying off over 2500 employees last year. It seems the CEO is planning to run back the clock this year as well.

Xbox Head Phil Spencer
Xbox Head Phil Spencer.

According to Business Insider, employees in the security division were notified about layoffs earlier this week. A Microsoft spokesperson called the layoffs “small in size” but didn’t share how many people were impacted.

Gaming, an important part of Microsoft’s future plans, is also impacted. The company has invested heavily in gaming, including acquiring Activision Blizzard. However, these layoffs show that even growth areas are not safe from layoffs these days.

The experiences and devices division, which focuses on creating new hardware and software, is facing similar issues. This area has become more competitive in recent years.

This comes almost a year after Microsoft laid off over 2000 thousand employees in the gaming division. 

Meanwhile, the security division, led by Charlie Bell, a former Amazon cloud executive, is among the teams facing layoffs. This is notable given Microsoft’s recent push on cybersecurity.

The company expanded its Secure Future Initiative last year, focusing on security after major breaches, including attacks by Chinese hackers that accessed customer emails.

Satya Nadella
In October 2024, CEO Satya Nadella’s pay rose by $30 million, bringing his total compensation to $71 million, despite major layoffs at the company.

Microsoft’s increased focus on security even became a key factor in employee performance reviews. CEO Satya Nadella highlighted this shift in an email, saying, “If you’re faced with a choice between security and another priority, choose security.”

This wave of recent layoffs is part of a broader trend in the tech industry, with even giant firms like Microsoft reviewing their workforce to stay efficient in an unpredictable global economy.

Do you think 2025 will mark another year of layoffs in the gaming and tech sector? Drop your thoughts in the comments, or join the conversation on the Tech4Gamers forum.

Was our article helpful? 👨‍💻

Thank you! Please share your positive feedback. 🔋

How could we improve this post? Please Help us. 😔

Gear Up For Latest News

Get exclusive gaming & tech news before it drops. Sign up today!

Join Our Community

Still having issues? Join the Tech4Gamers Forum for expert help and community support!

Latest News

Join Our Community

104,000FansLike
32,122FollowersFollow

Trending

Tomb Raider Developer Crystal Dynamics Is The Latest Studio To Face Layoffs

Crystal Dynamics, the developer studio behind Tomb Raider games, has just announced that it is cutting its workforce.

CD Projekt Red: Single-Player Games Like The Witcher & Cyberpunk Are Here to Stay

The co-CEO of CD Projekt Red believes that the demand for single-player games like The Witcher 4 and Cyberpunk Sequel will not disappear.

5 Out of 8 Major AAA Japanese Studios Already Hit Record-Breaking Share Prices This Year

Japan's AAA presence in the gaming industry has gotten stronger, as 5 of the 8 companies in the region reached record-breaking share prices.

Indiana Jones and The Great Circle Tops PlayStation Pre-Orders

With Indiana Jones and the Great Circle now available to pre-order for the PS5, the game is topping the PlayStation charts.

Rocksteady’s Next Batman Game Being Developed Using Unreal Engine 5

Rocksteady's latest job openings confirm that the team is working with Unreal Engine 5 for its next AAA project.