Microsoft Lays Off 3% of Employees, Impacting Thousands

Microsoft has announced a reduction of its workforce by 3%, affecting approximately 6,000 employees out of its total of 228,000 as reported by CNBC in June 2024. The company is focusing on streamlining management layers 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 cuts impact its video game division. In a separate development, Microsoft cut an additional 650 jobs from its gaming business in September 2024, following an earlier reduction of 1,900 staff that year. These cuts included the closure of Hi-Fi Rush developer Tango Gameworks and Redfall developer Arkane Austin, resulting in a total of 2,550 staff reductions in the gaming sector since the $69 billion acquisition of Activision Blizzard in 2023.

In June 2024, Xbox boss Phil Spencer commented to IGN on the necessity of these decisions, 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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