Microsoft has confirmed workforce reductions impacting approximately 3% of its global employee base. According to recent reports by CNBC, the company employed 228,000 individuals as of June 2024, meaning the layoffs could affect around 6,000 employees. These changes are part of a broader strategy to streamline operations and reduce management layers across all departments.
A Microsoft spokesperson commented on the restructuring, stating: “We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace.”
When contacted by IGN, Microsoft did not specify whether these latest cuts directly impact its gaming division. However, this announcement follows a series of earlier layoffs within the company’s gaming sector.
In September 2024, Microsoft laid off an additional 650 employees from its gaming division, following the dismissal of 1,900 staff earlier that year. Among the most notable consequences of those cuts were the closures of Tango Gameworks, the studio behind Hi-Fi Rush, and Arkane Austin, known for Redfall. In total, Microsoft has let go of 2,550 employees from its gaming business since finalizing the $69 billion acquisition of Activision Blizzard in 2023.
Back in June 2024, Xbox CEO Phil Spencer addressed the situation in an interview with IGN, explaining: “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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