Microsoft has announced a reduction of 3% of its total workforce, affecting approximately 6,000 employees. As reported by CNBC, Microsoft had 228,000 employees as of June 2024, and the company is focusing on streamlining management layers across all teams.
A Microsoft spokesperson stated 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 if these cuts 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 in the same year. As part of these layoffs, Microsoft shut down Tango Gameworks, the developer of Hi-Fi Rush, and Arkane Austin, known for Redfall. Since acquiring Activision Blizzard for $69 billion in 2023, Microsoft has cut a total of 2,550 jobs from its gaming sector.
In an interview with IGN in June 2024, Xbox boss Phil Spencer commented, "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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