Xbox's Phil Spencer Comments On And Defends Recent Layoffs

Microsoft recently laid off 10,000 people, and the cuts included people working on Xbox. Microsoft Gaming CEO Phil Spencer commented on and defended the cuts in a new interview with IGN.

He told the site that, as the leader of the Xbox division, he has a responsibility to "create a safe place where people can do their best work." With these latest layoffs, which impacted 343, Bethesda, The Coalition, and other Xbox teams, Spencer admitted, "I haven't succeeded at that."

Spencer went on to say that he is not only committed to Xbox workers, but also to Microsoft shareholders, and sometimes this requires difficult decisions.

"Right now, there's some business that we're having to work through, and part of that is making sure that we have the right resources in the right places to do the best work," Spencer said. "Sometimes, that means we have to make some allocations, in this case, some reductions, and I don't take that lightly, because the impact on the individuals is real. But it is, I think, important for us, for the larger organization that's here, that I put this business in the best stable position I can for what we need to go forward, which in the end should create a better place for the great team members that are here building the things that they're building."

The cuts impacted Halo developer 343 Industries, but Spencer said the studio remains committed to the Halo franchise. In fact, Spencer said Microsoft will "support and grow" Halo for as long as the Xbox platform exists.

The full interview touches on numerous other topics, including Microsoft's pending acquisition of Activision Blizzard, the future of Halo, the recent Developer Direct, and much more.

In other news, Xbox is returning to Los Angeles this summer for a new gaming showcase, but whether or not it's officially part of E3 2023 remains to be seen.