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Microsoft has announced a reduction of its workforce by 3%, affecting around 6,000 employees out of its total 228,000 as reported by CNBC in June 2024. The company is focused on streamlining its management layers across all teams to better position itself in a rapidly changing market. 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 clarify whether these layoffs impact its video game division. In a separate development, Microsoft reduced its gaming business staff by an additional 650 employees in September 2024, following an earlier cut of 1,900 staff earlier that year. These cuts included the closure of Hi-Fi Rush developer Tango Gameworks and Redfall developer Arkane Austin. Since the acquisition of Activision Blizzard for $69 billion in 2023, Microsoft has let go of a total of 2,550 employees from its gaming sector.
In a June 2024 interview with IGN, Xbox boss Phil Spencer commented on the necessity of these decisions, 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."
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