Microsoft has recently confirmed layoffs affecting 3% of its entire workforce. According to a report by CNBC, as of June 2024, Microsoft employed 228,000 people, meaning approximately 6,000 employees are impacted by these cuts. The company is focusing on streamlining management layers across all its teams. A Microsoft spokesperson stated, "We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace."
IGN has reached out to Microsoft to inquire if these layoffs extend to its video game business. In a significant move in September 2024, Microsoft announced further cuts, reducing an additional 650 staff members from its gaming division. This follows an earlier reduction of 1,900 staff within the same year. As part of these layoffs, Microsoft closed two studios: 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 employees from its gaming business.
In an interview with IGN in June 2024, Xbox boss Phil Spencer commented on the situation, 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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