Microsoft Layoffs Impact Thousands, Cuts 3% of Workforce

Microsoft has officially announced workforce reductions amounting to 3% of its global employee base. According to CNBC, the tech giant, which employed approximately 228,000 people as of June 2024, is streamlining its organizational structure across all divisions. The move will impact around 6,000 employees, with the aim of enhancing efficiency and adaptability in a rapidly changing market.

A Microsoft spokesperson stated, "We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace."

The recent layoffs follow earlier reductions in Microsoft's gaming division, where 1,900 employees were let go earlier in 2024. Subsequent cuts in September trimmed another 650 positions, resulting in the closure of studios such as Tango Gameworks, the developer behind Hi-Fi Rush, and Arkane Austin, responsible for Redfall. Overall, Microsoft has shed 2,550 employees from its gaming segment since acquiring Activision Blizzard for $69 billion in 2023.

Xbox chief Phil Spencer addressed the situation in June, acknowledging the tough choices required to maintain a sustainable business model. IGN has reached out to Microsoft for clarification regarding whether the latest cuts impact its gaming operations.

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