Microsoft CEO Satya Nadella has praised the “streamlining” underway at Xbox while the division continues a restructuring that has eliminated thousands of jobs. In an interview highlighted by Wccftech, Nadella called the work led by Xbox CEO Asha Sharma “great to see.”
The distinction matters: Nadella did not literally describe layoffs as great. His remark referred to the team's broader streamlining, but it arrived days after Xbox publicly confirmed another 268 eliminated roles across Halo Studios, other first-party studios, management and central functions.
Xbox says the reset is three-quarters complete
In its September 22 restructuring update, Xbox said the latest cuts and studio divestitures brought it roughly three-quarters of the way through its previously announced plan. Wccftech reports that the division cut 1,600 roles two months earlier and is working toward a total reduction of 3,200 employees before the end of the fiscal year.
The reset also consolidates studios and publishing groups. Xbox has presented the reorganization as a way to operate fewer business units, reduce management layers and focus resources on its largest franchises. For affected employees, that corporate logic has meant repeated rounds of job losses.
Nadella emphasizes a sustainable model
Nadella said Microsoft still sees gaming as part of its core identity, pointing to its studio and intellectual-property portfolio. He described the goal as becoming both a strong publisher and a platform provider across PCs and Xbox consoles.
The unresolved part is the business model. Nadella said Microsoft must “invent the right sustainable business model” to bring gaming to more people, while Sharma's team has said Xbox should return to growth in the next fiscal year. The restructuring is the plan now being used to pursue that target, and its human cost is already concrete.
