Microsoft has announced a reduction of 3% of its total workforce, affecting approximately 6,000 employees. According to CNBC, Microsoft had 228,000 employees as of June 2024, and the company is focusing on streamlining management layers across all its teams. A spokesperson from Microsoft 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 impact its video game division. In September 2024, Microsoft further reduced its gaming business staff by 650 employees, following an earlier cut of 1,900 staff in the same year. These layoffs included 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 let go of a total of 2,550 employees from its gaming sector.
In a conversation with IGN in June 2024, 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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