Phil Spencer addresses "painful" Xbox layoffs

By Sean Carey,

Addressing Microsoft's mass layoffs, Xbox boss Phil Spencer has called job cuts across Microsoft's gaming division "painful" in an email sent to staff.

Last week, Microsoft announced it would lay off 10,000 employees across the company "in response to macroeconomic conditions and changing customer priorities." Multiple Xbox Game Studios were affected, with 343 Industries seemingly taking the brunt of the cuts. Now, Xbox boss Phil Spencer has addressed the job losses in an email sent to all Xbox staff.

Xbox boss Phil Spencer calls job cuts at Xbox "painful choices"

Phil Spencer comments on painful Xbox layoffs

In the email, which was seen and published by Kotaku, Spencer called the job cuts "painful choices" and that Xbox gaming leadership "had to make decisions that we felt set us up for the long-term success of our products and business." Here is the email in full via Kotaku:

"This has been a difficult week across Microsoft, and here, inside our teams. Now that many of the 1:1 and team conversations have happened, I want to take a moment to reiterate the message that you heard from your leaders.

"This is a challenging moment in our business, and this week’s actions were painful choices. The Gaming Leadership Team had to make decisions that we felt set us up for the long-term success of our products and business, but the individual results of those decisions are real. I know that hurts. Thank you for supporting our colleagues as they process these changes.

"Over the coming weeks we will have many opportunities to connect and answer your questions, including the Monthly Gaming Update next week for teams who attend that meeting, and I am in close contact with teams at ZeniMax to provide support. The GLT and I are committed to being as transparent as we can. Moving forward with ambiguity is challenging, but I am confident that together, we will get through this difficult moment in time.

"Xbox has a long history of success thanks to the work you do in service of players, creators, and each other. Your work is so deeply appreciated and valued in these times of change and is integral to our business momentum. I am confident in our future and proud to be part of this team, but also conscious that this is a challenging time and I want to thank you for everything you do here."

Microsoft CEO Satya Nadella said layoffs would continue until the end of Q3 this financial year, so it's currently unclear if Xbox will be hit with more job losses. From what we've seen, 343 Industries, The Coalition, and Bethesda were all impacted by the cuts. 343 was hit particularly hard, leading many to speculate about the future of Halo. However, in a short statement, 343 studio head Pierre Hintze said that Halo and Master Chief "are here to stay."
Sean Carey
Written by Sean Carey
Sean graduated from Southampton Solent University with a first-class honours degree in Journalism, which he uses to keep TrueAchievements and TrueTrophies topped up with gaming and industry news. When not scouring the web for the latest big story, you’ll find him tearing up the streets in Forza Horizon 5, or failing miserably in Call of Duty: Warzone 2.0.