Microsoft announces a restructuring that cuts about 4,800 jobs companywide, including roughly 3,200 roles in its Xbox division. The layoffs include senior Xbox executive Kevin LaChapelle, a Microsoft veteran who confirms he is among those being let go after nearly 37 years at the company. According to reporting on the Xbox cuts, around 1,600 Xbox employees are affected immediately, with the remaining layoffs expected to take place through fiscal year 2027. Microsoft’s gaming reorganization is described as a response to slower-than-expected growth in the Xbox business and includes broader changes affecting multiple gaming teams.
LaChapelle’s statements describe his career at Microsoft, including leadership work on Xbox backward compatibility and cloud gaming initiatives. In a message posted after the announcement, he reflects on the end of his long tenure and expresses wishes for success to current and future teams. Other coverage also notes that Microsoft’s workforce changes come as it seeks growth by 2027 and positions the restructuring as a significant reset for the gaming unit. The reports present the layoffs as part of a wider effort to adjust the organization and improve performance.