Microsoft has insisted Xbox boss Phil Spencer isn’t retiring “anytime soon,” amid rumors over the executive’s future at the company following yesterday’s mass layoffs.
Around 4%, or just over 9,000 staff, were cut across Microsoft, and while the majority of those layoffs were outside the gaming business, Xbox studios were hit hard. Rare’s Everwild, for example, was canceled, as was the Perfect Dark reboot. The Initiative was closed.
Elsewhere, Candy Crush maker King suffered significant layoffs, as did Bethesda’s European operations. An unannounced MMO from The Elder Scrolls Online developer, ZeniMax Online Studios, was canceled and its development team cut. Matt Firor, the veteran boss of ZOS, stepped down. Reports indicate Forza developer Turn 10 and various Call of Duty development studios suffered layoffs, too.
Amid the bloodbath, Call of Duty leaker @TheGhostOfHope claimed Spencer, who has come under fire for the layoffs that have plagued Microsoft’s gaming business ever since its $69 billion acquisition of Activision Blizzard, was set to retire from his role as CEO after the launch of the next generation Xbox, with current Xbox president Sarah Bond set to take his place.
However, Microsoft issued a statement to press that suggests Spencer will remain in his role for some time to come. Speaking to The Verge, Kari Perez, head of Xbox communications, said: “Phil is not retiring anytime soon.”
It’s worth noting that the language used in Microsoft’s rebuttal is vague and does not directly address the claim. “Anytime soon,” is an undefined period of time. Does “soon” mean this year? Next year? 2027?
Microsoft is reportedly set to release its next-gen Xbox in 2027, although those plans may change. What we do know is that Spencer has overseen a series of devastating cuts since pushing the Activision Blizzard buyout through the courts. Microsoft laid off 1,900 staff in January 2024, then made further cuts just a few months later when it closed Redfall developer Arkane Austin and Hi-Fi Rush developer Tango Gameworks. In September 2024, Microsoft cut a further 650 staff from its gaming business. And in May this year, Microsoft cut an eye-watering 6,000 staff, or 3% of its entire workforce.
Speaking to IGN in June 2024, Xbox boss Phil Spencer said: "I have to run a sustainable business inside the company and grow, and that means sometimes I have to make hard decisions that frankly are not decisions I love, but decisions that somebody needs to go make."
Where does Microsoft go from here? All games shown during the June 2025 gaming showcase are reportedly safe for now, as are the studios making them. The company has announced a strong presence at gamescom in August, where it is expected to show off its upcoming slate.
Image credit: Victor J. Blue/Bloomberg via Getty Images.
Wesley is Director, News at IGN. Find him on Twitter at @wyp100. You can reach Wesley at wesley_yinpoole@ign.com or confidentially at wyp100@proton.me.
