Microsoft Slashes 3% of Jobs, Impacts Thousands

Microsoft has announced workforce reductions totaling 3% of its global staff, affecting approximately 6,000 employees. As of June 2024, the company had 228,000 employees, according to CNBC. These cuts are part of a broader strategy to streamline management across all teams.

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 layoffs impact its video game division. In September 2024, Microsoft made additional cuts, reducing its gaming business staff by 650 employees, following an earlier reduction of 1,900 staff in the same year. These actions led to the closure of Tango Gameworks, the developer behind 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 conversation with IGN in June 2024, Xbox head Phil Spencer commented on the situation, 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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