Microsoft Slashes 3% of Jobs, Impacting Thousands

Microsoft has confirmed that it will reduce 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 aims to streamline its management structure 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 will impact its video game division. In September 2024, Microsoft announced further layoffs, cutting 650 jobs from its gaming business following an earlier reduction of 1,900 staff in the same year. As a result of these layoffs, Microsoft shut down 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 employees from its gaming sector.

In a conversation with IGN in June 2024, Xbox head Phil Spencer commented on the situation, 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."

Developing...