Over the last year, layoffs have been strenuous not just in the gaming industry but also in the tech industry at large. Whether over the potential coming of a recession or the need to correct the potential over-hiring of employees during COVID-19, job security has become a worry on everyone's mind. As an IT professional, it's a worry I also live with. With the new year only a few weeks old, it seems the past is continuing.
As reported by Business Insider, Microsoft is laying off employees across multiple parts of the organization. These include security, experiences, sales, devices, and gaming.
"A Microsoft spokesperson said the layoffs are small but did not specify a figure and unrelated to the job cuts Business Insider recently reported targeting underperforming employees across the company. One of the people familiar with the matter said employees started receiving notifications Tuesday about layoffs in Microsoft's security unit."
As noted by Business Insider, this comes just a week after reports that Microsoft was looking to lay off underperforming employees. Even though the number is not specified, it's still tough to continue seeing layoffs in the industry. It seems like this is never-ending.
These cuts come just months after Microsoft reportedly cut around 650 people from the gaming team. "As part of aligning our post-acquisition team structure and managing our business, we have made the decision to eliminate approximately 650 roles across Microsoft Gaming—mostly corporate and supporting functions—to organize our business for long-term success," Spencer emailed to the teams.
Again, this comes just months after the layoffs months ago. The industry has been getting hammered for the last 2 years, with 10,500 positions lost in 2023 and an additional 14,600 jobs in 2024. These cuts included Embracer Group, Microsoft, Electronic Arts, Sony, Epic, Take Two, Riot, and more. To make matters even worse, over 30 entire video game development studios cut their whole staff. Those Studios include Arcane Austin, Firewalk Studios, and the rather frustrating layoffs of Tango GameWorks. Even Game Informer shut down.
As someone who works in the tech industry, it's a terrifying time to lose your job in the tech world. It's awful anywhere, but the doom and gloom of AI continues to rise in the world; some of us in the industry aren't necessarily safe. AI is taking over in attempts to get leaner, meaner, and even greener. Sometimes to grow, sometimes for show.
I've heard stories of recent potential job openings managers have been trying to make get turned down to make said assignment redundant through AI. Even if said idea wasn't better than hiring an actual person, it comes down to how cheap a company can run. So why am I bringing AI into this?
These layoffs come on the heels of a new Microsoft patent that explores the use of AI in gaming. Even though this is a tool for user narrative creation, I doubt that a company that puts billions into OpenAI isn't going to use it anywhere and everywhere it can. Here's to hoping those affected find somewhere else to call home soon.
How about the readers? How do you feel about the latest layoffs at Microsoft? Do you know anyone who's been affected? Share your story below or on social media with us. No voice should go unheard.
