Nadella calls Xbox layoffs "great to see" as 268 more cuts hit 3,200 target

___Patrice___ · x · 2026-09-27

Microsoft CEO Satya Nadella called the Xbox "streamlining" under CEO Asha Sharma "great to see" in a Sources Podcast interview, even as 268 more employees were cut this week, on top of 1,600 layoffs two months ago. Xbox aims to shed 3,200 staff by fiscal year-end.

Nadella framed gaming as core Microsoft DNA alongside developer tools and knowledge work, expressed confidence in the IP portfolio, and stressed the need for a sustainable business model. The restructuring is splitting studios between Activision and ZeniMax, with Obsidian staff reportedly worried about losing autonomy under Bethesda.

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