Microsoft has announced a reduction of 3% of its total workforce, affecting approximately 6,000 employees out of the 228,000 it had as of June 2024. The company aims to streamline management layers across all its teams, according to a statement provided to CNBC. A Microsoft spokesperson emphasized the necessity of these organizational changes to better position the company in a dynamic marketplace.

IGN has reached out to Microsoft to inquire if these cuts will impact its video game division. In a related development, Microsoft made further cuts to its gaming business in September 2024, letting go of an additional 650 staff members. This follows an earlier reduction of 1,900 staff in the same year, which included the closure of 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 June 2024, Xbox boss Phil Spencer spoke to IGN about the necessity of these decisions, 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."

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