Microsoft has revealed plans to cut approximately 6,840 jobs, representing a 3% staff reduction of its global workforce, according to a recent CNBC report. The reduction will impact employees across all levels, teams and locations, suggesting the company’s gaming division could face cuts as well.

A Microsoft spokesperson stated that one goal of the layoffs is to “reduce layers of management,” adding that the company is implementing “organizational changes necessary to best position the company for success in a dynamic marketplace.” This marks Microsoft’s largest workforce reduction since January 2023, when the company eliminated around 10,000 positions (4.5% of its workforce). Those cuts significantly impacted Xbox and Bethesda, including reported significant layoffs at 343 Industries, the developer behind Halo Infinite.

More recently, in January 2024, Microsoft cut 1,900 gaming-specific positions across Xbox, Bethesda, and the newly acquired Activision Blizzard. At that time, Microsoft Gaming head Phil Spencer explained in a staff email that leadership had “set priorities, identified areas of overlap, and ensured that we’re all aligned on the best opportunities for growth.”

Microsoft has not yet detailed which specific teams or projects might be affected by the layoffs, nor has the company indicated whether certain divisions will bear a heavier burden than others. The exact impact on Microsoft’s gaming teams from this latest round of layoffs remains unclear. Based on employee numbers from June of last year, the 3% reduction would affect approximately 6,840 workers, though current staffing levels may differ.

As this story develops, affected employees and industry observers will be watching closely for any signs of how these changes might influence Microsoft’s gaming strategy and output in the coming years.