Microsoft CEO Satya Nadella Calls Xbox Layoffs 'Great to See'

Microsoft CEO Satya Nadella praises Xbox's 'streamlining' after 268 more layoffs, calling it 'great to see' as the company restructures under new CEO Asha Sharma.

What does Microsoft's top boss think about Xbox's recent wave of layoffs? Apparently, he's a fan. In a new interview on the Sources Podcast with Alex Heath, Microsoft CEO Satya Nadella described Xbox's ongoing "streamlining" as "great to see" — just days after the company cut another 268 jobs.

That's on top of the 1,600 positions Microsoft's gaming division already eliminated earlier this year. The cuts are part of a massive "reset" led by Xbox's new(ish) CEO Asha Sharma, who has become the public face of the controversial restructuring. Under her watch, Obsidian has been folded into Bethesda, the Halo franchise has been handed to Activision, and studios like Double Fine, Compulsion Games, and Undead Labs have been shown the door. Hellblade developer Ninja Theory is also reportedly on the chopping block.

Nadella, for his part, remains upbeat about the company's gaming future. "I feel fantastic about the IP we have right now," he said during the interview. "If I look at the studios, the IP portfolio we have, and our ability to then take that and produce great games going forward, I feel fantastic."

As for the thousands of people who've lost their jobs? Nadella framed it as a necessary tune-up. "There's some amount of streamlining the team is doing, and Asha is doing, which is great to see," he said, comparing the process to designing a Formula 1 car. He then pivoted to Microsoft's future plans: "Then we have to invent the right sustainable business model that allows us to deliver gaming to more and more people. That has always been the goal, which is, we want to be a great publisher and a great platform provider to games across both PC and Xboxes."

Nadella also expressed confidence in Xbox's growth prospects, noting that Sharma and her team have said the division will grow in the next fiscal year. But the timing of that business model invention is a bit puzzling — after all, the company is undergoing one of the most dramatic reorganizations in its history before figuring out exactly how it plans to make money. As one observer put it, it's like ripping a wing off a plane and then asking, "Right, how do we circumnavigate this 'globe' thing?"

And the restructuring isn't over yet. When the latest layoffs were announced, Xbox's Chief Creator Officer Matt Booty said the company was "roughly three-quarters of the way through previously announced restructuring." That means more changes are likely on the horizon — and more tough news for the people who make the games you love.

So, what do you think of Nadella's comments? Are you still optimistic about Xbox's future, or does this latest round of cuts have you worried? Let us know in the comments.