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Microsoft Lays Off 3% of Staff, Impacting Thousands

May 28,25(5 days ago)

Microsoft has officially announced workforce reductions amounting to 3% of its global employee base, impacting approximately 6,000 workers across all teams and departments. According to CNBC, the tech giant currently employs 228,000 individuals, and the裁员 initiative aims to streamline management structures company-wide.

A Microsoft spokesperson confirmed the move in a statement to CNBC, emphasizing the necessity of organizational adjustments to thrive in a rapidly evolving market landscape. IGN reached out to the company for clarification regarding whether the cuts would impact its gaming division.

This recent round of layoffs follows Microsoft's earlier announcement in September 2024, where an additional 650 positions were eliminated from its gaming sector. This marked the second wave of cuts within the year, coming after the initial reduction of 1,900 staff earlier in 2024. As part of these actions, Microsoft shuttered studios such as Tango Gameworks, the developer behind Hi-Fi Rush, and Arkane Austin, responsible for Redfall. Since acquiring Activision Blizzard for $69 billion in 2023, the company has cumulatively laid off 2,550 employees from its gaming division.

In a candid conversation with IGN in June 2024, Xbox chief Phil Spencer acknowledged the tough choices required to ensure financial sustainability and growth. He stated, "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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