Microsoft has announced workforce reductions impacting approximately 3% of its global employee base. According to recent reports by CNBC, the tech giant employed roughly 228,000 individuals as of June 2024, meaning the layoffs could affect around 6,000 workers. The company is reportedly streamlining management layers across departments as part of broader organizational adjustments.
A Microsoft spokesperson stated, “We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace,” in response to inquiries from CNBC.
When contacted by IGN, Microsoft did not confirm whether these most recent cuts directly impact its gaming division. However, this latest round of layoffs follows previous reductions within the sector.
In September 2024, Microsoft laid off an additional 650 employees from its gaming division, following an earlier wave of 1,900 job cuts earlier that year. Among the consequences of those reductions were the closures of Tango Gameworks, the studio behind Hi-Fi Rush, and Arkane Austin, known for Redfall. In total, Microsoft has let go of 2,550 employees from its gaming business since finalizing its $69 billion acquisition of Activision Blizzard in 2023.
Back in June 2024, Xbox CEO Phil Spencer addressed the situation during an interview with IGN, acknowledging the difficult choices being made: “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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