Microsoft Layoffs Impact Thousands, Cuts 3% of Workforce

Microsoft has confirmed that it will cut 3% of its total workforce, affecting approximately 6,000 employees out of its 228,000 staff as reported by CNBC in June 2024. The company aims to streamline 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 inquire if these cuts will impact its video game business. In September 2024, Microsoft announced further reductions, cutting 650 staff from its gaming division, following an earlier cut of 1,900 staff in the same year. These actions led to 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 reduced its gaming business workforce by a total of 2,550 employees.

In a conversation with IGN in June 2024, Xbox boss Phil Spencer addressed the layoffs, 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."

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