Microsoft Lays Off 3% of Employees, Impacting Thousands

Microsoft has announced a reduction of 3% of its workforce, impacting around 6,000 employees out of a total of 228,000 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, according to a Microsoft spokesperson.

IGN has reached out to Microsoft to inquire if these cuts extend to its video game division. In related news, Microsoft made additional cuts in September 2024, letting go of 650 staff from its gaming business following an earlier reduction of 1,900 staff in the same year. This resulted in 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 cut a total of 2,550 jobs from its gaming sector.

In a statement to IGN in June 2024, Xbox boss Phil Spencer emphasized the necessity of running a sustainable business, acknowledging the tough decisions required to ensure growth.

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