Microsoft has announced that it will be laying off 3% of its total staff.
The layoffs will take place across all levels, teams and locations, according to a CNBC report, suggesting that Microsoft‘s gaming division may be affected to some extent.
According to the report Microsoft had around 228,000 employees by the end of last June, which would mean laying off 6,840 employees (though it’s not currently known if the employee count has risen or fallen since then).
In a statement to CNBC, a Microsoft spokesperson said that one of the objectives of the layoffs was to reduce layers of management, saying: “We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace.”
This would be the largest mass layoff at Microsoft since January 2023, when the company confirmed plans to lay off around 4.5% of its workforce, around 10,000 employees.
The 2023 round of layoffs affected Microsoft’s video game divisions across both Xbox and Bethesda, with a reported “significant” number of layoffs at 343 Industries, the studio behind 2021’s Halo Infinite. Microsoft’s HoloLens business and some engineering divisions were also reportedly part of those cuts.
This was followed by a games-specific round of layoffs in January 2024, where Microsoft announced that it was cutting 1,900 staff across Xbox, Bethesda and its then-newly acquired Activision Blizzard.
According to a message sent to staff at the time by Microsoft head of gaming Phil Spencer, the decision had been made after Microsoft and Activision Blizzard’s leadership teams “set priorities, identified areas of overlap, and ensured that we’re all aligned on the best opportunities for growth”.
Spencer said in the email to staff: “As we move forward in 2024, the leadership of Microsoft Gaming and Activision Blizzard is committed to aligning on a strategy and an execution plan with a sustainable cost structure that will support the whole of our growing business. Together, we’ve set priorities, identified areas of overlap, and ensured that we’re all aligned on the best opportunities for growth.
“As part of this process, we have made the painful decision to reduce the size of our gaming workforce by approximately 1900 roles out of the 22,000 people on our team. The Gaming Leadership Team and I are committed to navigating this process as thoughtfully as possible.”
It’s not yet clear how many staff in Microsoft’s gaming division will be affected by the company’s newly announced 3% of layoffs.
