Microsoft has confirmed a reduction of 3% of its total workforce, affecting around 6,000 employees out of the 228,000 it had as of June 2024. The company aims to streamline its management layers across all teams as part of this restructuring. 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 impact its video game division. In September 2024, Microsoft announced further layoffs within its gaming business, cutting 650 jobs after already reducing 1,900 positions earlier that year. These actions 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 laid off a total of 2,550 staff from its gaming sector.
In a June 2024 interview with IGN, Xbox boss Phil Spencer commented on 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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