Phil Spencer says Xbox ‘has never looked stronger’ as Microsoft confirms layoffs of around 9,000

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According to recent news, it seems that Microsoft has indeed announced significant job cuts throughout the organization this week. Approximately 4% of their workforce, equivalent to about 9,000 employees, are set to be let go, including those from sales departments and Microsoft Gaming. This decision is likely to impact several studios and projects, but in a message to staff, Phil Spencer expressed that the Xbox and Microsoft Gaming divisions are currently stronger than ever due to tough choices being made now and in the future.

After the job cuts were announced and the exact number was verified by The Seattle Times, it was revealed that approximately 4% of Microsoft’s workforce – around 9,100 employees – would be affected. On the same day, a memo from Phil Spencer was circulated to Microsoft Gaming staff, confirming that layoffs would also affect this department. In his memo, Spencer addressed some concerns about the health of Xbox and Microsoft Gaming, but assured everyone that their platform, hardware, and game development plans had never been stronger.

The entirety of Phil Spencer’s letter to employees can be found below, as reported by The Verge:

This week’s layoffs at Microsoft have been officially confirmed, leading to reports of their impact, such as the potential cancellation of Rare’s Everwild project. Notably, this follows Microsoft’s expenditure of approximately $9.7 billion on stock buybacks and investor dividends in Q3 FY25. Keep an eye out for future developments concerning Microsoft Gaming by following our Microsoft topic.

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2025-07-02 19:27