Software giant Microsoft is laying off employees in the gaming (Xbox), security and sales divisions, though the actual number wasn’t disclosed.

According to a Microsoft spokesperson (viaGamesIndustry), the job cuts would affect a “small number” of employees, and these layoffs were not related to the job cuts from last week that focused on underperforming workers.

Xbox Cloud Gaming

Microsoft Lays Off Employees For The Second Time This Month

Last week, Microsoft laid off an undisclosed number of employees affecting various sectors of the company. The total job cuts would be less than 1% of employees, and the lay offs would be based on performance.

Per a Microsoft spokesperson (via CNBC), “At Microsoft we focus on high-performance talent. We are always working on helping people learn and grow. When people are not performing, we take the appropriate action.”

Tifa and Aerith hold on to Cloud in Final Fantasy 7 Remake

Before this month’s layoffs, the Xbox division culled about 650 jobs last year in September, when an internal memo from Xbox boss Phil Spencerleaked online.

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Final Fantasy 7 Remake is rumored to hit the Xbox Series X|S and Nintendo Switch 2 in 2025, with FF7 Rebirth out on non-Sony consoles in 2026.

2024 was a very challenging year for video game developers, as multiple studios shutdown, and thousands of jobs were cut. We’re just in January, and things aren’t look that bright, either. Aside from Microsoft, Suicide Squad: Kill the Justice League developer Rocksteady Studiosalso revealed that jobs were cutat the start of the year.

Microsoft

We hope the affected people, regardless if they’re on the gaming division or not, land on their feet as soon as possible.

While I hope it’s not as bad as it was last year, I wouldn’t be surprised to see more layoffs happen within the year given how massive video game development budgets have become.

In other Xbox news, we are gettinga Developer Direct event next week, which should house a surprise announcement or two. Microsoft hasalso confirmed they are working on a portable gaming device, though it’s a long time from hitting retail.

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