Microsoft: Xbox Chief Phil Spencer Staying Amid Rumors

Microsoft has refuted rumors suggesting that Xbox chief Phil Spencer will retire "anytime soon." The speculation arose following the company's recent mass layoffs, which impacted the gaming division.

Microsoft laid off approximately 4% of its workforce, amounting to over 9,000 employees. While the cuts primarily affected non-gaming sectors, Xbox studios also suffered significant losses. Projects like Rare's Everwild and the Perfect Dark reboot were canceled, and The Initiative studio was shut down.

Other major impacts included substantial job losses at Candy Crush maker King and Bethesda's European operations. ZeniMax Online Studios, developer of The Elder Scrolls Online, canceled an unannounced MMO and reduced its team. Veteran executive Matt Firor of ZOS also stepped down. Reports further indicate layoffs at Forza developer Turn 10 and several Call of Duty studios.

Amid these widespread cuts, Call of Duty leaker @TheGhostOfHope claimed that Spencer—who has faced criticism for the ongoing layoffs since Microsoft's $69 billion acquisition of Activision Blizzard—planned to retire as CEO after the launch of the next-generation Xbox. The report suggested current Xbox president Sarah Bond would succeed him.

However, Microsoft has publicly dismissed these claims. In a statement to The Verge, Kari Perez, head of Xbox communications, stated, "Phil is not retiring anytime soon."

It is worth noting that Microsoft's rebuttal uses vague language that does not directly refute the specific claim. The phrase "anytime soon" leaves the timeline open to interpretation, whether it refers to this year, next year, or beyond.

Microsoft is reportedly targeting a 2027 release for its next-generation Xbox, though plans could shift. What is clear is that Spencer has overseen multiple rounds of severe cuts since successfully navigating the Activision Blizzard acquisition through legal channels. Microsoft eliminated 1,900 positions in January 2024, followed by further cuts within months, including the closure of Redfall developer Arkane Austin and Hi-Fi Rush studio Tango Gameworks. In September 2024, another 650 jobs were cut from the gaming division. This May, Microsoft slashed a staggering 6,000 roles, constituting about 3% of its total workforce.

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In a June 2024 interview with IGN, Xbox head Phil Spencer addressed the difficult decisions, saying, "I have to run a sustainable business within the company and drive growth. That sometimes means making hard choices—choices I don't personally like, but that someone has to make."

Looking ahead, Microsoft plans to move forward with its announced gaming slate. All titles featured during its June 2025 showcase are reportedly secure, as are the studios behind them. The company has also confirmed a major presence at gamescom this August, where it is expected to highlight its upcoming lineup.