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Microsoft Layoffs: 3% Workforce Reduction Impacts Thousands

by Henry May 14,2025

Microsoft has confirmed that it is reducing its workforce by 3%, affecting approximately 6,000 employees out of its total of 228,000 as reported by CNBC in June 2024. The company aims to streamline its operations by reducing management layers across all teams. 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 whether these cuts will impact its video game business. In a further development, Microsoft announced in September 2024 that it would cut an additional 650 staff from its gaming division, following an earlier reduction of 1,900 employees in the same year. This resulted in 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 let go of a total of 2,550 staff from its gaming business.

In a conversation with IGN in June 2024, Xbox boss Phil Spencer emphasized 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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