Microsoft has officially announced workforce reductions amounting to 3% of its global employee base. According to CNBC, the tech giant currently employs approximately 228,000 people and plans to streamline management structures across all departments. These cuts will impact around 6,000 employees.
A Microsoft spokesperson stated in a press release to CNBC, "We are implementing organizational changes to ensure the company remains competitive in a rapidly evolving market."
Following this announcement, IGN reached out to Microsoft for clarification regarding whether the layoffs would affect its gaming division.
In September 2024, Microsoft further reduced its gaming workforce by 650 employees, adding to the 1,900 layoffs earlier that year. These actions resulted in the closure of studios such as Tango Gameworks, responsible for Hi-Fi Rush, and Arkane Austin, behind Redfall. Since acquiring Activision Blizzard for $69 billion in 2023, Microsoft has laid off a total of 2,550 employees within its gaming segment.
In a June 2024 interview with IGN, Xbox head Phil Spencer remarked, "Running a sustainable business requires tough decisions, even when they're not easy ones."
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