Microsoft Layoffs Impact Thousands as Company Cuts 3% of Staff

Microsoft has announced a significant reduction in its workforce, cutting approximately 3% of its total employees. According to a report by CNBC, the company, which had 228,000 employees as of June 2024, is looking to streamline its operations by reducing management layers across various teams. This decision impacts around 6,000 employees.

A Microsoft spokesperson explained the move to CNBC, stating, “We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace.” This statement reflects Microsoft's strategy to adapt to the evolving business environment.

IGN reached out to Microsoft to inquire if these cuts extend to its video game division. The company has already made significant reductions in this sector. In September 2024, Microsoft laid off an additional 650 staff members from its gaming business, following the earlier cut of 1,900 staff earlier that year. As a result of these layoffs, Microsoft closed two notable studios: Tango Gameworks, known for Hi-Fi Rush, and Arkane Austin, the developer behind Redfall. Since acquiring Activision Blizzard for $69 billion in 2023, Microsoft has let go of a total of 2,550 employees from its gaming business.

In an interview with IGN in June 2024, Xbox boss Phil Spencer discussed the rationale behind 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."

This story is still developing, and further updates will be provided as more information becomes available.