Microsoft has announced a reduction of its workforce by 3%, affecting approximately 6,000 employees out of its total of 228,000 as reported by CNBC in June 2024. The company aims to streamline its management layers across all teams to better position itself in the dynamic marketplace. A Microsoft spokesperson 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 layoffs impact its video game division. In a separate development, Microsoft made additional cuts to its gaming business in September 2024, letting go of 650 staff members following an earlier reduction of 1,900 employees in the same 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 reduced its gaming business staff by a total of 2,550 employees.
In a conversation with IGN in June 2024, Xbox boss Phil Spencer emphasized the necessity 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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