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Microsoft reportedly makes “small” number of further layoffs across divisions including gaming

Microsoft has reportedly made another round of layoffs, this time affecting a “small” number of employees spanning its security, experiences and devices, sales, and gaming divisions.

That’s according to Business Insider, which – citing “people familiar with the matter” – reports impacted employees were notified of the layoffs on Tuesday. A Microsoft spokesperson told the publication a “small” number of job cuts had been made, but did not specify a figure. It also said the move was unrelated to recent job cuts targeting underperforming employees.

The news follows several rounds of layoffs at Microsoft over the last year. In January 2024, the company announced it was cutting 1900 jobs across its gaming division, with a further 650 cuts being made in September. Eurogamer understands Microsoft’s latest layoffs have impacted a small number of gaming employees, but that the division wasn’t specifically a focus.

In response to a request for comment on Business Insider’s report, a Microsoft spokesperson told Eurogamer, “Organisational and workforce adjustments are a necessary and regular part of managing our business. We will continue to prioritise and invest in strategic growth areas for our future and in support of our customers and partners.”

Microsoft’s latest layoffs follow a devastating 2024 for the games industry, in which around 13000 employees are believed to have lost their jobs. Those layoffs have continued into the new year, with numerous job cuts having been reported amid studio closures. Last year, Chris Dring shared his thoughts with Eurogamer on why these layoffs are happening.

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