Microsoft has confirmed a reduction of 3% of its workforce, affecting around 6,000 employees out of the 228,000 it had as of June 2024. The company aims to streamline management layers across all its teams to better position itself in the competitive market, according to a statement from a Microsoft spokesperson to CNBC.
IGN has reached out to Microsoft to inquire whether these layoffs impact its video game division. In a separate move, Microsoft cut an additional 650 staff from its gaming business in September 2024, following an earlier cut of 1,900 staff that year. These reductions 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 sector.
In a conversation with IGN in June 2024, Xbox boss Phil Spencer emphasized the need for tough decisions to ensure the sustainability and growth of the 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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