Microsoft Slashes 3% Workforce, Impacts Thousands

Microsoft has recently announced a significant reduction in its workforce, amounting to 3% of its total employees. According to CNBC, as of June 2024, Microsoft employed 228,000 individuals, and the company plans to streamline its management structure across various teams. This decision impacts approximately 6,000 employees.

In a statement to CNBC, a Microsoft spokesperson explained, "We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace." This move underscores Microsoft's commitment to adapting and thriving amidst evolving market conditions.

IGN has reached out to Microsoft to inquire if these cuts extend to its video game division. In a related development, Microsoft confirmed further layoffs in September 2024, affecting 650 staff members from its gaming business. This follows an earlier cut of 1,900 staff in the same year. As part of these reductions, Microsoft made the decision to close Hi-Fi Rush developer Tango Gameworks and Redfall developer Arkane Austin. Since acquiring Activision Blizzard for $69 billion in 2023, Microsoft has let go of a total of 2,550 staff from its gaming business.

In an interview with IGN in June 2024, Xbox boss Phil Spencer addressed the situation, 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 reflects the challenging but necessary steps Microsoft is taking to ensure long-term viability and growth.

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