Microsoft Layoffs Impact Thousands, Cuts 3% of Workforce

Microsoft has recently announced a workforce reduction of 3%, which equates to approximately 6,000 employees being affected. As of June 2024, the company had a total of 228,000 employees, according to CNBC. This move is part of Microsoft's broader strategy to streamline its organizational structure by reducing management layers across all teams.

A Microsoft spokesperson stated to CNBC, "We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace." This indicates that the company is actively adapting to market conditions to maintain its competitive edge.

IGN has reached out to Microsoft to inquire if these cuts impact its video game business. This is particularly relevant given the recent layoffs in the gaming sector. In September 2024, Microsoft reduced its gaming staff by an additional 650 employees, following an earlier cut of 1,900 staff in the same year. These reductions led to the closure of notable studios such as 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 let go of a total of 2,550 employees from its gaming division.

In a conversation with IGN in June 2024, Xbox boss Phil Spencer discussed the necessity of these tough 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."

This story is still developing, and more information may emerge as Microsoft continues to navigate its strategic adjustments.