Phil Spencer's memo on mass Xbox layoffs leaks online

Phil Spencer's internal memo to Xbox gaming employees has leaked as Microsoft makes devastating cuts and layoffs to worldwide Xbox teams.

Phil Spencer's memo on mass Xbox layoffs leaks online
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Senior Gaming Editor
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2 minutes & 15 seconds read time
TL;DR: Microsoft began layoffs affecting up to 9,000 employees, including in its Xbox gaming division. Xbox CEO Phil Spencer emphasized the need to prioritize strategic growth and agility by focusing on high-potential areas, while supporting impacted staff with severance and job placement resources to ensure the division's long-term success.

Read what Xbox CEO Phil Spencer said to employees this morning as Microsoft cut thousands of jobs.

Phil Spencer's memo on mass Xbox layoffs leaks online 1

Today, Microsoft started a layoff spree that could affect as many as 9,000 people, including its billion-dollar games division. The memo that Xbox gaming CEO Phil Spencer sent out to employees has now been published by IGN, revealing how management handled the delicate situation.

In the memo, Spencer outlines the harsh realities of the interactive entertainment business, especially for gaming in particular: "The success we're seeing currently is based on tough decisions we've made previously," he said, possibly underlining Microsoft's current goals of hybridizing the Xbox platform.

Check below for the full memo:

Today we are sharing decisions that will impact colleagues across our organization.

To position Gaming for enduring success and allow us to focus on strategic growth areas, we will end or decrease work in certain areas of the business and follow Microsoft's lead in removing layers of management to increase agility and effectiveness.

Out of respect for those impacted today, the specifics of today's notifications and any organizational shifts will be shared by your team leaders in the coming days.

I recognize that these changes come at a time when we have more players, games, and gaming hours than ever before. Our platform, hardware, and game roadmap have never looked stronger.

The success we're seeing currently is based on tough decisions we've made previously.

We must make choices now for continued success in future years and a key part of that strategy is the discipline to prioritize the strongest opportunities.

We will protect what is thriving and concentrate effort on areas with the greatest potential, while delivering on the expectations the company has for our business.

This focused approach means we can deliver exceptional games and experiences for players for generations to come.

Prioritizing our opportunities is essential, but that does not lessen the significance of this moment.

Simply put, we would not be where we are today without the time, energy, and creativity of those whose roles are impacted. These decisions are not a reflection of the talent, creativity, and dedication of the people involved.

Our momentum is not accidental - it is the result of years of dedicated effort from our teams.

HR is working directly with impacted employees to provide severance plan benefits (aligned with local laws), including pay, healthcare coverage, and job placement resources to support their transition.

Employees whose roles were eliminated are encouraged to explore open positions across Microsoft Gaming, where their applications will be given priority review.

Thank you to everyone who has shaped our culture, our products, and our community. We will move forward with deep appreciation and respect for all who have contributed to this journey.

Phil

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News Source:ign.com

Senior Gaming Editor

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Derek joined TweakTown in 2015 and has since reviewed and played 1000s of hours of new games. Derek is absorbed with the intersection of technology and gaming, and is always looking forward to new advancements. With over six years in games journalism under his belt, Derek aims to further engage the gaming sector while taking a peek under the tech that powers it. He hopes to one day explore the stars in No Man's Sky with the magic of VR.

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