Microsoft has announced a workforce reduction of 3%, affecting approximately 6,000 of its 228,000 employees as of June 2024. The company is focusing on streamlining its management structure across all teams to better position itself in a dynamic market, according to a statement from a Microsoft spokesperson to CNBC.
In addition to these cuts, Microsoft has also made significant reductions within its gaming division. In September 2024, the company laid off an additional 650 employees from its gaming business, following an earlier cut of 1,900 staff in the same year. These layoffs led to the closure of 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 reduced its gaming workforce by a total of 2,550 employees.
IGN has reached out to Microsoft to inquire if the latest round of cuts impacts its video game business. In a conversation with IGN in June 2024, Xbox boss Phil Spencer addressed the challenges of running a sustainable business, 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."
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