Microsoft has officially announced a reduction of its workforce by 3%, equating to approximately 6,000 job cuts. As reported by CNBC, Microsoft's employee count stood at 228,000 in June 2024, and the company is focusing on streamlining its management structure across various teams. A spokesperson from Microsoft 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.
IGN has reached out to Microsoft to determine whether these cuts will impact its video game division. Earlier in 2024, Microsoft had already made significant reductions in its gaming sector, with a total of 2,550 staff members let go since the acquisition of Activision Blizzard for $69 billion in 2023. This includes a cut of 1,900 employees earlier in the year, followed by an additional 650 in September 2024. As part of these layoffs, Microsoft closed down studios such as Tango Gameworks, the developers behind Hi-Fi Rush, and Arkane Austin, known for Redfall.
In a conversation with IGN in June 2024, Xbox head Phil Spencer commented on the necessity of these tough decisions, saying, "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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