Home News Microsoft Announces 3% Workforce Reduction, Affecting Thousands

Microsoft Announces 3% Workforce Reduction, Affecting Thousands

by Caleb Sep 24,2025

Microsoft has confirmed a 3% reduction in its global workforce.

According to CNBC, Microsoft employed 228,000 people as of June 2024 and is streamlining management layers across its teams. This impacts roughly 6,000 employees.

“We are making strategic organizational adjustments to position the company for success in a competitive market,” a Microsoft spokesperson told CNBC.

IGN has reached out to Microsoft to clarify if the layoffs impact its gaming division.

In September 2024, Microsoft reduced its gaming workforce by an additional 650 employees, following 1,900 layoffs earlier that year. As part of those cuts, Microsoft shut down Tango Gameworks, the developer of Hi-Fi Rush, and Arkane Austin, the studio behind Redfall. Since acquiring Activision Blizzard for $69 billion in 2023, Microsoft has eliminated 2,550 gaming division jobs.

In a June 2024 interview with IGN, Xbox chief Phil Spencer stated: "I must ensure a sustainable business within the company and drive growth, which sometimes requires tough decisions I don’t enjoy but must make."

Developing...

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