Microsoft has announced a reduction of 3% of its total workforce, equating to approximately 6,000 job cuts from its reported 228,000 employees as of June 2024. These layoffs are part of a broader strategy to streamline management layers across all teams, as confirmed by a statement from a Microsoft spokesperson to CNBC: "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 whether these layoffs impact its video game division. In related news, Microsoft made further cuts to its gaming business in September 2024, reducing its staff by an additional 650 employees. This follows an earlier cut of 1,900 staff in the same year, leading to the closure of Hi-Fi Rush developer Tango Gameworks and Redfall developer Arkane Austin. In total, Microsoft has laid off 2,550 employees from its gaming sector since the $69 billion acquisition of Activision Blizzard in 2023.
In a conversation with IGN in June 2024, Xbox boss Phil Spencer addressed the necessity of these 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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