By Alessio Palumbo
Publication Date: 2026-09-27 08:00:00
Microsoft CEO Satya Nadella was recently featured in a lengthy interview on the Sources Podcast, and he briefly discussed this week’s new chapter in the Xbox restructuring plan, though not in a way that would make him any more endearing to fans and developers.
For starters, he called the streamlining that CEO Asha Sharma and her team are doing “great to see“. That’s certainly not how a lot of people would describe the significant job losses accompanying the Xbox reset; just this week, 268 layoffs were announced on top of the 1,600 that occurred two months ago. And it’s not over yet, as Xbox’s stated goal is to reduce the headcount by 3,200 employees before the end of the fiscal year.
I always say at Microsoft, we’ve had gaming, in fact, I think we’ve had gaming even before, as a category, before Windows. That’s right, Flight Sim. And so, to me, it’s in the same core DNA, like developer tools and knowledge work. And I feel fantastic about the…
