
Microsoft CEO Calls Xbox Mass Layoffs "Great to See" Amid Ongoing Studio Cuts
Microsoft's gaming division has been rocked by a sweeping wave of job cuts and studio closures, following the elimination of 1,600 employees over the summer. The turbulence has continued under new Xbox CEO Asha Sharma, whose "reset" of the division has now seen thousands of positions eliminated in total. The restructuring has drawn widespread criticism from the gaming community, which had already been shaken by the summer's initial round of layoffs.
Adding fuel to the fire, Microsoft CEO Satya Nadella publicly commented on the ongoing cuts, describing the situation in strikingly upbeat terms. Speaking amid the fallout, Nadella said of Sharma's actions, "There's some amount of streamlining Asha is doing, which is great to see." The remarks landed poorly with fans and industry observers, who viewed the comments as tone-deaf given the scale of human impact involved. Critics argue the statement signals that further consolidation of Xbox's operations may still be on the horizon.
Key Insights
- 1Xbox has shed thousands of jobs in 2026, starting with 1,600 layoffs over the summer followed by additional cuts and studio closures in September.
- 2New Xbox CEO Asha Sharma is leading what Microsoft is internally framing as a strategic 'reset' of the gaming division.
- 3Microsoft CEO Satya Nadella publicly praised the layoffs as 'streamlining,' a characterization that drew swift backlash from the gaming community.
- 4The combination of mass layoffs, studio closures, and leadership commentary has significantly damaged Xbox's public goodwill.
- 5The ongoing restructuring raises questions about the long-term direction of Microsoft's first-party gaming ambitions.
Sources
Microsoft CEO Attempts To Kill Remaining Xbox Goodwill
GameSpot · 1d ago
Amid mass Xbox layoffs, Microsoft CEO Satya Nadella says the "streamlining" is "great to see"
GamesRadar · 1d ago
Microsoft CEO On Recent Xbox Layoffs: 'There's Some Amount Of Streamlining Asha Is Doing…Which Is Great To See'
Kotaku · 1d ago
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