Microsoft has confirmed it is reducing its workforce by 3%, impacting approximately 6,000 employees out of its 228,000 total staff as reported by CNBC in June 2024. The company is focusing on streamlining 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 cuts extend to its video game division. In a separate development, Microsoft announced further cuts in September 2024, affecting 650 staff members from its gaming business, following an earlier reduction of 1,900 staff in the same year. These actions led to the closure of Hi-Fi Rush developer Tango Gameworks and Redfall developer Arkane Austin. In total, Microsoft has let go of 2,550 employees from its gaming sector since acquiring Activision Blizzard for $69 billion in 2023.
In a conversation with IGN in June 2024, Xbox boss Phil Spencer commented on the necessity of these decisions, 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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