Microsoft has confirmed plans to reduce its global workforce by approximately 3%, impacting around 6,000 employees. According to CNBC, the tech giant had 228,000 employees as of June 2024, and the restructuring aims to streamline management layers across all departments.

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

When contacted by IGN, Microsoft did not confirm whether the latest round of layoffs specifically impacts its gaming division. However, this comes after prior reductions within the sector.

In September 2024, Microsoft laid off an additional 650 employees from its gaming business, following an earlier wave of 1,900 job cuts earlier that year. As part of those reductions, the company shut down renowned studios including Tango Gameworks—known for Hi-Fi Rush—and Arkane Austin, the developer behind Redfall. In total, Microsoft has let go of 2,550 staff from its gaming division since finalizing the $69 billion acquisition of Activision Blizzard in 2023.

Back in June 2024, Xbox CEO Phil Spencer addressed the situation during an interview with IGN, 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.”

More to follow…