Microsoft Lays Off 3% of Employees, Impacting Thousands

Microsoft has announced a significant reduction in its workforce, confirming cuts that amount to 3% of its total employees. According to CNBC, as of June 2024, Microsoft employed 228,000 people, meaning approximately 6,000 employees are affected by these layoffs. The company aims to streamline its operations by reducing management layers across all teams. A Microsoft spokesperson stated to CNBC, "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 whether these cuts impact its video game business. In a related development, Microsoft made further cuts to its gaming division in September 2024, letting go of an additional 650 staff members. This followed an earlier reduction of 1,900 employees in the same year, bringing the total number of layoffs in the gaming sector to 2,550 since the acquisition of Activision Blizzard for $69 billion in 2023. As part of these reductions, Microsoft closed the studios behind Hi-Fi Rush, Tango Gameworks, and Redfall, Arkane Austin.

In a conversation with IGN in June 2024, Xbox boss Phil Spencer addressed the layoffs, 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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