Microsoft Slashes 3% of Jobs, Impacts Thousands

Microsoft has announced layoffs affecting 3% of its global workforce, which equates to approximately 6,000 employees out of a total of 228,000 as reported by CNBC in June 2024. The company is focusing on streamlining its organizational structure by reducing management layers across all teams. A Microsoft spokesperson emphasized the necessity of these changes to better position the company for success in a dynamic market.

IGN has reached out to Microsoft to inquire if these layoffs extend to its video game division. In a separate development, Microsoft made additional cuts to its gaming business in September 2024, letting go of 650 more staff members following an earlier reduction of 1,900 employees that year. These cuts led to the closure of Tango Gameworks, known for Hi-Fi Rush, and Arkane Austin, the developer behind Redfall. Since acquiring Activision Blizzard for $69 billion in 2023, Microsoft has reduced its gaming workforce by a total of 2,550 employees.

In a conversation with IGN in June 2024, Xbox head Phil Spencer addressed the need for tough decisions to ensure the sustainability and growth of the business, 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."

This story is still developing.