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Microsoft’s 10K Layoffs ‘Hurts’ Says Phil Spencer

Earlier today, Phil Spencer, CEO of Xbox, sent an email to all full-time employees of Microsoft’s gaming divisions. The email was obtained and verified by Kotaku, and the full text is provided below, via a current Xbox employee.

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.

Phil

Phil Spencer in E-mail to Employees

On January 18, Microsoft announced the layoffs of 10,000 employees across the company, including at gaming studios such as 343 Industries, The Coalition, ZeniMax Media, and Bethesda Game Studios. Xbox has been facing challenges in releasing first-party titles and is under pressure to produce major titles such as Starfield. Some of the impacted employees were senior talent. This move comes a year after the company acquired Activision Blizzard for $70 billion.

About Phil Spencer

Phil Spencer is the current head of Xbox at Microsoft. He has been with the company for over 25 years, starting out as a program manager in the Windows division before eventually rising to his current position.

He has been instrumental in the development and success of the Xbox gaming platform, and has led the division through several major product launches and initiatives, including the Xbox 360, Xbox One, and Xbox Series X/S.

Spencer is a well-respected leader in the gaming industry, known for his deep knowledge of gaming and his passion for the medium. He is also known for his focus on customer satisfaction and for working closely with game developers to create innovative, high-quality gaming experiences.

Spencer holds a Bachelor’s degree in Computer Science from the University of Washington.

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