Microsoft Cuts 3% of Workforce, Thousands Affected

Jan 15,26

Microsoft has confirmed it is reducing its global workforce by approximately 3%.

According to CNBC, Microsoft employed 228,000 people as of June 2024. The company's stated goal is to streamline management structures across all departments, an initiative that will impact around 6,000 employees.

In a statement to CNBC, a Microsoft spokesperson said, "We are making strategic organizational adjustments to ensure the company remains agile and competitive in a rapidly evolving market."

IGN has reached out to Microsoft to inquire whether these reductions will impact its video game divisions.

This follows a previous round of layoffs in September 2024, where Microsoft eliminated 650 positions in its gaming arm. This came after 1,900 job cuts earlier in the same year. Those restructuring efforts led to the closure of Tango Gameworks, the studio behind Hi-Fi Rush, and Arkane Austin, the developer of Redfall. Since its $69 billion acquisition of Activision Blizzard in 2023, Microsoft has laid off a total of 2,550 employees from its gaming business.

In a June 2024 conversation with IGN, Xbox head Phil Spencer commented, "Running a sustainable and growing business within the larger company requires difficult choices. These are never decisions I enjoy making, but they are necessary for our long-term health."

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