Microsoft has confirmed a workforce reduction of 3%, impacting approximately 6,000 of its 228,000 employees as reported by CNBC in June 2024. The tech giant is focusing on streamlining management layers across all teams to enhance efficiency. 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 cuts extend to its video game division. In a further development, Microsoft announced in September 2024 the elimination of an additional 650 jobs within its gaming business, following the earlier cut of 1,900 staff in the same year. These layoffs led to the closure of notable studios such as Hi-Fi Rush developer Tango Gameworks and Redfall developer Arkane Austin. Since acquiring Activision Blizzard for $69 billion in 2023, Microsoft has reduced its gaming workforce by a total of 2,550 employees.

In a June 2024 interview with IGN, 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."

Developing...