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Microsoft has confirmed it will cut 3% of its workforce, affecting around 6,000 employees out of a total of 228,000 as of June 2024. The company aims to streamline 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."
IGN has inquired whether these cuts impact Microsoft's video game business. In September 2024, Microsoft reduced its gaming division by an additional 650 staff members, following an earlier cut of 1,900 employees that year. This led to 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 staff from its gaming business.
In June 2024, Xbox boss Phil Spencer told IGN, "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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