Microsoft has announced a workforce reduction of 3%, affecting approximately 6,000 of its 228,000 employees as of June 2024. According to CNBC, the company is streamlining its management layers across all teams to better position itself in a dynamic 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 determine 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 that year. As a result of these layoffs, Microsoft closed studios such as 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 laid off a total of 2,550 employees from its gaming sector.
In a June 2024 interview with IGN, Xbox boss Phil Spencer commented on the layoffs, 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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