Satya Nadella Commends Xbox’s Streamlining Amidst Recent Layoffs
- Microsoft CEO Satya Nadella praises the restructuring of Xbox under Asha Sharma.
- Recent layoffs at Xbox include 268 additional job cuts, confirmed amidst broader organizational changes.
- Nadella expresses optimism about Xbox’s future growth and game development potential.
Microsoft CEO Satya Nadella recently lauded the ongoing restructuring efforts at Xbox, led by Xbox CEO Asha Sharma, shortly after the division experienced additional layoffs.
In a conversation on the Sources podcast with Alex Heath, Nadella was asked about Xbox’s transformation and expressed feeling “fantastic” about the brand’s direction.
Nadella stated, “I feel fantastic about the IP we have right now,” referring to the intellectual property and studios under Xbox. He noted, “There’s some amount of streamlining the team is doing, and Asha is doing, which is great to see.” He emphasized the importance of developing a sustainable business model to expand gaming access.
He added, “So that is sort of our goal, and I think Asha and the team have said that Xbox is going to get back to growth this next fiscal year, and that’s the plan they’re executing on, and in that process, do a bang-up job of producing some great games.”
Nadella’s remarks come amid reports of imminent job cuts, confirmed as an additional 268 layoffs within Xbox. This follows significant organizational changes, including the potential closure of British studio Ninja Theory, the realignment of Obsidian under Bethesda, a merger of Playground and Turn 10, and the independence of Undead Labs. The restructuring also impacts Rare, World’s Edge, and the Halo franchise, which are shifting under Activision’s control.
Previously, in July, Asha Sharma announced a restructuring plan leading to layoffs affecting 3,200 employees, described as the “most significant” in Xbox’s history. Of those, 1,600 were effective immediately, while some first-party studios, such as Double Fine and Compulsion Games, were allowed to operate independently after the cuts.
News Courtesy of Eurogamer
