Business

Phil Spencer admits Xbox cuts were ‘painful choice’


Xbox boss Phil Spencer reached out to Xbox staff across the company, admitting it had been a “difficult week” and that while “this week’s actions were painful choices,” it “set [Xbox] for the long-term success of our products and business.”

The email – which was shared by my city – follows Microsoft’s massive roundup of 10,000 cuts that affected several Xbox studiosincluding Halo studio, 343 Industries.

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“It’s been a tough week at Microsoft and here on our teams. Now that a lot of 1:1 and team conversations have happened, I want to take a moment to reiterate the message you heard from your leaders,” Spencer’s email began.

“This is a challenging time in our business and this week’s actions were painful choices. The Games Leadership Team (GLT) had to make decisions that we felt set us up for the long-term success of our products and business, but the individual results of those decisions were real. I know it hurts. Thank you for supporting our colleagues as they process these changes.

“In the coming weeks we’ll have plenty of opportunities to reach out and answer your questions, including next week’s monthly gaming update for teams attending this meeting, and I’m in close contact with the ZeniMax teams to provide support” , adds Spencer “The GLT and I are committed to being as transparent as possible. Moving forward with uncertainty is challenging, but I am confident that together we will get through this difficult time.

“Xbox has a long history of success thanks to the work you do serving players, creators and each other,” the announcement concludes. “Your work is so deeply appreciated and valued in these times of change and is an integral part of our business momentum. I’m confident in our future and I’m proud to be part of this team, but I also recognize that this is a challenging time and I want to thank you for everything you’re doing here.”

Microsoft previously cut “hundreds” of jobs in October last year, including some team members working in the company’s Xbox division. The cuts come ahead of Microsoft’s next financial results briefing, which is expected on January 24.




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