Microsoft has confirmed that it will reduce its workforce by 3%, affecting approximately 6,000 employees out of its 228,000-strong team as of June 2024. The company is focusing on streamlining management layers across all teams to better position itself in a dynamic marketplace, according to a statement given to CNBC.
IGN has reached out to Microsoft to inquire if these cuts will impact its video game division. In a separate development, Microsoft has already reduced its gaming business staff by a total of 2,550 since acquiring Activision Blizzard for $69 billion in 2023. This includes a cut of 650 staff in September 2024, following an earlier reduction of 1,900 employees that year. As part of these measures, Microsoft closed Hi-Fi Rush developer Tango Gameworks and Redfall developer Arkane Austin.
In a conversation with IGN in June 2024, Xbox boss Phil Spencer addressed the challenging decisions required to maintain a sustainable and growing business within Microsoft, 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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