Microsoft Layoffs Impact Thousands, Cuts 3% of Workforce

Microsoft has announced a reduction of 3% of its workforce, equating to approximately 6,000 employees, as reported by CNBC. As of June 2024, the company had a total of 228,000 employees and is focusing on streamlining management layers across all teams. 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 September 2024, Microsoft further reduced its gaming business by letting go of 650 staff members, following an earlier cut of 1,900 employees that year. These layoffs led to the closure of Hi-Fi Rush developer Tango Gameworks and Redfall developer Arkane Austin. Since acquiring Activision Blizzard for $69 billion in 2023, Microsoft has laid off a total of 2,550 staff from its gaming business.

In a conversation with IGN in June 2024, Xbox boss Phil Spencer commented on 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."

Developing...