Nadella Calls Xbox Reorganization Positive as Thousands Lose Jobs
Microsoft CEO Satya Nadella addressed Xbox's recent layoffs and restructuring in a podcast interview, describing the company's reorganization efforts as positive. He said he remains confident in Xbox's intellectual property and its ability to make strong games, and expects the division to return to growth next fiscal year. The comments follow thousands of job cuts and a restructuring that includes moving Halo to Activision teams.
Nadella discussed Xbox on the Sources Podcast with Alex Heath. His remarks came after 1,600 Xbox roles were cut in July and later structural changes were revealed. He praised the efficiency efforts led by Xbox CEO Asha Sharma and said he remains confident in the brand's intellectual property and game-making capacity.
Microsoft plans another 1,600 reductions before the fiscal year ends. Recent moves include shifting Halo from Halo Studios to Activision teams, placing Obsidian's Fallout: New Vegas group under Bethesda, and reorganizing id Software. Double Fine and Ninja Theory were also affected, while Undead Labs became independent as State of Decay 3 continues development.
The layoffs and reorganization could affect thousands of workers and their families, while remaining studios may face uncertainty and heavier workloads. Players may see shifts in familiar franchises, release schedules, or studio identities as Halo and other properties move under new teams. The changes may also influence how other gaming firms approach consolidation, publishing, and platform strategy, though long-term effects remain unclear.