Microsoft has confirmed it will cut 3% of its entire workforce, affecting approximately 6,000 employees. As of June 2024, Microsoft employed 228,000 people, and the company is aiming to streamline its management layers across all teams.
A Microsoft spokesperson told 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 determine if these cuts will impact its video game business. In September 2024, Microsoft reduced its gaming division by an additional 650 staff members, following the earlier cut of 1,900 employees that year. As a result of these reductions, Microsoft closed Hi-Fi Rush developer Tango Gameworks and Redfall developer Arkane Austin. Since acquiring Activision Blizzard for $69 billion in 2023, Microsoft has let go of a total of 2,550 staff from its gaming business.
In a June 2024 interview with IGN, Xbox boss Phil Spencer commented on the layoffs, 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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