Microsoft has recently announced a significant reduction in its workforce, confirming cuts that amount to 3% of its total employees. According to a report by CNBC, as of June 2024, Microsoft had 228,000 employees, meaning approximately 6,000 individuals are affected by these layoffs. The company is focusing on reducing management layers across all its teams to streamline operations. A Microsoft spokesperson emphasized the necessity of these organizational changes, stating 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 cuts will impact its video game business. This query comes in the wake of further layoffs in September 2024, where Microsoft reduced its gaming staff by an additional 650 employees. Earlier in the year, 1,900 staff members were let go, leading to the closure of notable studios such as Hi-Fi Rush developer Tango Gameworks and Redfall developer Arkane Austin. These actions resulted in a total of 2,550 staff members being cut from Microsoft's gaming business since the acquisition of Activision Blizzard for $69 billion in 2023.
In a conversation with IGN in June 2024, Xbox boss Phil Spencer addressed the challenging decisions he faces, 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, and more updates are expected as Microsoft navigates these significant changes.
