Microsoft Layoffs Impact Thousands, Cuts 3% of Workforce

Microsoft has announced a reduction of 3% of its global workforce, impacting around 6,000 employees. According to CNBC, as of June 2024, Microsoft employed 228,000 people and is focusing on streamlining management layers across all teams. A spokesperson for the company 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 layoffs extend to its video game division. In a separate development, Microsoft made further cuts in September 2024, reducing its gaming business staff by an additional 650 employees. This follows an earlier reduction of 1,900 staff 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 cuts, Microsoft closed down Hi-Fi Rush developer Tango Gameworks and Redfall developer Arkane Austin.

In a June 2024 interview with IGN, Xbox head Phil Spencer commented on the situation, saying, "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."

This story is still developing.