Nadella calls Xbox cuts 'great to see' and backs growth push
Microsoft chief executive Satya Nadella has called recent job cuts across Xbox “great to see” and said he feels “fantastic” about the studios and game series left behind.
He made the remarks in an episode of the Sources Podcast, as reported on 26 September 2026 by Video Games Chronicle. The comments address a difficult period for staff. They also set out where Nadella thinks Xbox goes next.
“There’s some amount of streamlining the team is doing, and Asha is doing, which is great to see,” Nadella said. Asha Sharma is the new chief executive of Xbox, who took charge of the gaming business earlier this year.
Xbox said on 6 July 2026 that it would cut about 3,200 roles throughout its 2027 financial year, according to a post on Xbox Wire. The company described that plan as the most significant restructure in Xbox history. Nadella did not give a new jobs figure in the podcast.
Nadella said Sharma’s brief is to return Xbox to growth by concentrating on its largest titles. He said Sharma and her team plan to get the business back to growth in the next fiscal year. That is the 12-month reporting period companies use to measure sales and costs.
He also said Microsoft wants to be a strong publisher and platform provider across PC and Xbox consoles. A publisher funds, markets and sells games. A platform provider runs the hardware and shopfront where people buy and play them.
The podcast remarks follow months of scrutiny of Xbox costs. Sharma aims to bring the gaming unit’s profit margin back in line with rivals by next year, CNBC reported on 30 July 2026. Earlier, on 12 June 2026, Reuters reported that Microsoft had considered options for Xbox, including a possible spin-off or turning it into a wholly owned subsidiary.
For players, this means fewer new bets and more weight on familiar names. Nadella has previously said Xbox will keep releasing its own first-party games, the titles made by studios it owns, on other platforms as well as Xbox.
