Microsoft has announced a workforce reduction of 3% of its total employees, impacting approximately 6,000 individuals out of its 228,000 staff as reported by CNBC in June 2024. The company is streamlining its organizational structure by reducing management layers across all teams. A Microsoft spokesperson emphasized the necessity of these changes to better position the company in a dynamic market.
IGN has reached out to Microsoft to inquire if these cuts extend to its video game division. In a separate development, Microsoft made further cuts to its gaming business in September 2024, letting go of an additional 650 employees. This follows an earlier reduction of 1,900 staff earlier in the year, bringing the total layoffs in the gaming sector to 2,550 since the acquisition of Activision Blizzard for $69 billion in 2023. As part of these layoffs, Microsoft closed studios such as Tango Gameworks, known for Hi-Fi Rush, and Arkane Austin, the developer behind Redfall.
In a conversation with IGN in June 2024, Xbox boss Phil Spencer discussed the challenging nature 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."
This story is still developing.
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