Microsoft Layoffs Impact Thousands, Cuts 3% of Workforce

Microsoft has announced a reduction of 3% of its global workforce, affecting approximately 6,000 employees out of a total of 228,000 as reported by CNBC in June 2024. The company is focusing on streamlining management layers across all teams to better position itself in a competitive market. A spokesperson for Microsoft 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 made further cuts, reducing an additional 650 staff from its gaming business following an earlier reduction of 1,900 employees that year. These actions 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 sector.

In a conversation with IGN in June 2024, Xbox head Phil Spencer remarked, "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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