Microsoft Cuts 3% of Its Workforce, Affecting Thousands of Staff

Microsoft has confirmed that it will reduce its workforce by 3%, affecting approximately 6,000 of its 228,000 employees as of June 2024. The company aims to streamline 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 division. In September 2024, Microsoft laid off an additional 650 employees from its gaming business, following an earlier cut of 1,900 staff in the same year. These reductions 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 let go of a total of 2,550 staff from its gaming business.

In a conversation with IGN in June 2024, Xbox boss Phil Spencer commented on the necessity of 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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