Nadella Deflects on Xbox Layoffs, Touts 'Streamlined' Future

Microsoft's 'Xbox Reset' continues with part two officially commenced. In an interview on the 'Sources Podcast', CEO Satya Nadella discussed the current state of Xbox, stating he feels 'fantastic' about the IP portfolio and studios. However, when asked about the mass layoffs that have occurred throughout 2026, Nadella referred to them as 'streamlining the team,' a term that has struck a nerve with many.

Nadella's lack of compassion for the laid-off employees is evident in his comments, with over 3000 workers and developers affected. He emphasized the need for a sustainable business model to deliver gaming to more people, but failed to acknowledge the human cost of the 'streamlining' process.