Microsoft has recently announced layoffs affecting 3% of its global workforce, which equates to approximately 6,000 employees out of a total of 228,000 as reported by CNBC in June 2024. The company is focusing on streamlining its management structure across all teams to better position itself in the competitive market. A spokesperson from Microsoft 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 whether these layoffs impact its gaming division. Earlier in 2024, Microsoft made significant cuts to its gaming business, letting go of 2,550 employees since acquiring Activision Blizzard for $69 billion in 2023. This included a reduction of 1,900 staff earlier in the year and an additional 650 in September 2024, which led to the closure of Hi-Fi Rush developer Tango Gameworks and Redfall developer Arkane Austin.
In a conversation with IGN in June 2024, Xbox boss Phil Spencer addressed the necessity of these 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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