Microsoft CEO Satya Nadella says the Xbox division’s “streamlining” is “great to see,” following recent changes under new leadership. The comments come days after Xbox announced additional job cuts and moves to restructure its game-development studios.
Outlets report that the latest layoffs affect Halo Studios and other first-party developers as part of a broader effort to reorganize the business. Microsoft is also planning to cut about 3,200 jobs by the end of fiscal year 2027. Both sources link Nadella’s remarks to the company’s wider focus on restructuring while maintaining confidence in Xbox’s gaming portfolio.
Nadella’s broader remarks also include the rationale behind the changes: strengthening the sustainability of Xbox’s business model, placing emphasis on studios and intellectual property, and improving fundamentals in adjacent areas such as Windows, including security upgrades. While the outlets differ slightly in which context they highlight, they agree that Nadella’s comments are tied to the ongoing Xbox restructuring and workforce changes.
