Microsoft Layoffs: 3% Workforce Reduction Impacts Thousands

Microsoft has announced a reduction of 3% of its workforce, affecting approximately 6,000 employees out of its 228,000 total as reported by CNBC in June 2024. The company is focusing on streamlining its management layers 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 layoffs impact its video game division. In a separate development, Microsoft cut an additional 650 jobs from its gaming sector in September 2024, following an earlier reduction of 1,900 staff in the same year. This included 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 employees from its gaming business.

In an interview with IGN in June 2024, Xbox boss 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."

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