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Updated: Microsoft Layoffs Hit In-Game Ad Unit

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imageUpdated: Twenty-eight percent of the staff at Microsoft’s in-game advertising unit was laid off in Tuesday’s round of job cuts, a Microsoft (NSDQ: MSFT) representative told Wednesday. The layoffs at Massive were smaller than initially reported by VentureBeat, although the unit was nevertheless disproportionally impacted by Tuesday’s cuts. (We contacted Microsoft to check on the VentureBeat report Tuesday evening but they did not have a breakdown available). The company laid off roughly 3,000 employees Tuesday in its second round of job cuts in four months.

Microsoft purchased Massive three years ago for between $200 million and $400 million. In recent months, Massive has announced several major ad deals with big gaming companies, including Activision (NSDQ: ATVI). Microsoft has also integrated Massive in its cross-platform ad sales.

Anecdotal accounts on the anonymous Mini-Microsoft employee blog and on Twitter suggest that other Microsoft advertising businesses, including its Atlas Solutions unit, saw major job cuts today. The company has still not confirmed those reports.

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