Microsoft has laid off employees across several departments, including security, experiences and devices, sales, and gaming. According to individuals familiar with the situation, the layoffs began earlier this week, with impacted employees receiving notifications on Tuesday.
While the company confirmed the layoffs, a spokesperson described them as "small" but did not disclose the exact number of employees affected. These cuts are reportedly unrelated to recent layoffs targeting underperforming staff.
Microsoft's Security Division Faces Layoffs Despite Cybersecurity
The security division, led by Charlie Bell, a former Amazon executive, is one of the areas hit by the layoffs.
Bell joined Microsoft in 2021 to spearhead its cybersecurity initiatives. His arrival marked a significant push for Microsoft to bolster its security framework, especially following major incidents that exposed vulnerabilities in the company's systems.
Last year, Microsoft emphasized security as a core priority for all employees, integrating it into performance evaluations.
According to Business Insider, CEO Satya Nadella previously instructed employees to prioritize security above all else, underscoring its importance to the company's strategy.
Despite these efforts, the security division has now experienced job cuts, leaving questions about how these changes might affect ongoing initiatives.
Microsoft's gaming sector has been under significant pressure, with recent rounds of layoffs further reducing its workforce. This includes employees at major subsidiaries like Activision Blizzard and ZeniMax, which were acquired to strengthen the company's position in the gaming industry.
Earlier layoffs in January 2024 and September 2024 saw over 2,500 employees lose their jobs across gaming and corporate roles.
These reductions come as the gaming industry faces broader challenges, including market shifts and mixed reception to high-profile game releases. Microsoft's actions raise concerns about its ability to maintain momentum in a highly competitive industry.
FTC Scrutinizes Microsoft Layoffs Amid $3 Trillion Valuation and Mergers
The layoffs come during a period of significant change for Microsoft, which recently reached a market value of $3 trillion, GameRant said.
Despite this financial success, the company has faced criticism over its workforce reductions, particularly in the wake of its high-profile acquisitions.
The Federal Trade Commission (FTC) previously scrutinized Microsoft's layoffs at Activision Blizzard, viewing them as a potential issue in the merger process.
Additionally, these recent cuts extend beyond gaming and security. Sales and device teams have also been affected, suggesting a broader realignment within Microsoft's organizational structure.
The company has not disclosed specific details about these changes, leaving employees and industry analysts speculating about its long-term strategy.
