Microsoft Slashes 3% of Jobs, Impacting Thousands

Microsoft has announced a reduction of its workforce by 3%, affecting 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 management layers across all 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 whether these cuts impact its video game division. In a separate development, Microsoft made further cuts to its gaming business in September 2024, letting go of an additional 650 employees. This follows an earlier reduction of 1,900 staff in the same year, resulting in the closure of studios like Hi-Fi Rush developer Tango Gameworks and Redfall developer Arkane Austin. Since the acquisition of Activision Blizzard for $69 billion in 2023, Microsoft has laid off a total of 2,550 employees from its gaming sector.

In a conversation with IGN in June 2024, Xbox head Phil Spencer remarked, "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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