Microsoft has officially announced workforce reductions affecting approximately 3% of its global employees.
According to CNBC's report, Microsoft employed 228,000 workers as of June 2024 and plans to streamline management structures across all departments. Around 6,000 positions will be eliminated.
"We're making strategic organizational adjustments to ensure Microsoft remains competitively positioned in an evolving business landscape," a company spokesperson told CNBC.
IGN has reached out to Microsoft for clarification on whether these layoffs impact its gaming division.
These cuts follow Microsoft's September 2024 decision to eliminate 650 gaming positions, which came after 1,900 gaming jobs were cut earlier in the year. The restructuring led to the closure of Tango Gameworks (developer of Hi-Fi Rush) and Arkane Austin (Redfall studio). Since acquiring Activision Blizzard for $69 billion in 2023, Microsoft has reduced its gaming workforce by 2,550 employees.
In a June 2024 interview with IGN, Xbox head Phil Spencer explained: "My responsibility includes maintaining sustainable business growth, which sometimes requires making difficult decisions - choices I don't personally favor but that necessary leadership demands."
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