Microsoft has announced a workforce reduction of 3% across its entire company, affecting approximately 6,000 employees out of its 228,000 total staff as reported by CNBC in June 2024. The company is focusing on streamlining management layers across all teams to better position itself in the competitive market. A Microsoft spokesperson stated, "We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace."
IGN has reached out to Microsoft to inquire if these cuts will impact its video game division. In related news, Microsoft made further cuts to its gaming business in September 2024, letting go of an additional 650 staff members. This follows an earlier reduction of 1,900 employees in the same year, bringing the total number of layoffs in the gaming sector to 2,550 since the acquisition of Activision Blizzard for $69 billion in 2023. As part of these layoffs, Microsoft closed studios such as Tango Gameworks, known for Hi-Fi Rush, and Arkane Austin, the developer behind Redfall.
In a June 2024 interview with IGN, Xbox boss Phil Spencer addressed the challenging decisions, stating, "I have to run a sustainable business inside the company and grow, and that means sometimes I have to make hard decisions that frankly are not decisions I love, but decisions that somebody needs to go make."
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