Microsoft Lays Off 4,800 Staffers, Including Xbox Leadership

Microsoft announced on January 25, 2024, that it would lay off 4,800 employees across the company, with 1,600 roles eliminated from its Xbox division. An additional 1,600 positions are slated for elimination within Xbox by the end of the fiscal year. In an internal email, Xbox CEO Asha Sharma cited that the company's strategic bets on Game Pass, multi-platform releases, and a broader content portfolio did not achieve their expected growth pace. These layoffs are described as the most significant restructuring in Xbox's history, leading to the departure of several long-serving executives.

Among the affected leadership is Dave McCarthy, corporate vice president of product services at Xbox, who is leaving his role after eight years. Helen Chiang, formerly corporate vice president of Minecraft, has been appointed as the company's new COO. In this newly created position, Chiang will oversee end-to-end P&L responsibility for content, hardware, platform, and services, aiming to unify previously independent studios and teams under a single operating model. This restructuring is intended to streamline investment decisions, facilitate learning from past outcomes, and enhance accountability for results.

Prior to the widespread layoffs, other key figures had already departed from Xbox. In June 2023, Craig Duncan, head of Xbox Game Studios, stepped down after joining the team in November 2022. Louise O’Connor, the company's chief of staff, also left her position. The restructuring has resulted in the elimination of roles for many employees with decades of experience at Microsoft and Xbox. Kevin LaChapelle, a 37-year veteran of Microsoft who joined in 1989 as a software designer engineer, was among those laid off. He had risen to the position of vice president and general manager for xCloud, which evolved into Xbox Cloud Gaming, and was instrumental in developing features like backwards compatibility.