Microsoft cuts jobs following Phil Spencer's promotion to Head of Xbox

Just days after Microsoft promoted games veteran Phil Spencer to the new position of Head of Xbox, the company has cut an unspecified number of positions. Microsoft confirmed the move in a statement, but didn't say why the job cuts were necessary or what departments were hit.

"At Xbox, our goal is to constantly create new fun, social, and interactive entertainment experiences. As part of our commitment to this goal, we are always evaluating our development priorities, and there are times when decisions need to be made to realign plans and refocus our efforts," a Microsoft representative told VG247.

"Microsoft Studios continues to grow as an overall organization as we focus and invest in key priority areas that will drive future profitable growth."

Reports of the Microsoft Studios job cuts began to surface today via tweets from affected employees.

Speaking with GameSpot at GDC, Spencer said news about downsizing is more a reflection of the size and scope of AAA games today rather than an indicator of the vibrancy of the market. As part of the normal development cycle for big-budget games, studios staff up and then shed employees when they are not needed. This not not atypical, he said.