Xbox Layoffs: Microsoft CEO Calls Cuts 'Great to See'

Microsoft CEO Satya Nadella praises Xbox CEO Asha Sharma's layoffs as 'streamlining' and says he feels 'fantastic' about the IP portfolio, sparking backlash amid ongoing job cuts.

Did you hear what Microsoft's CEO just said about those Xbox layoffs? In a new interview, Satya Nadella called the recent job cuts and studio closures 'great to see' — and fans are not happy.

Here's the deal: Xbox laid off 1,600 employees over the summer, and this week brought even more layoffs and studio closures. On the Sources Podcast, Nadella praised Xbox CEO Asha Sharma for 'streamlining the team' and said he feels 'fantastic about the IP we have right now.' He added that Microsoft needs to 'invent the right sustainable business model' to deliver gaming to more people.

But that's not all. Nadella also went on a tangent about AI, wondering why Western consumers are so skeptical compared to other parts of the world. He mentioned a Gallup poll showing low AI optimism in the West and asked, 'Why are people in Nigeria more optimistic about AI than in the United States?' He argued the industry needs to earn trust and show benefits, or 'celebrating technology for technology's sake is not working.'

Meanwhile, prominent AI skeptic Ed Zitron blamed Xbox's precarious position on 'catastrophic mismanagement' by Microsoft and AI bets that didn't pay off. And even after the latest cuts, there are signs that more job cuts are coming to Xbox.

So while Nadella paints a rosy picture of the IP portfolio, the reality for many Xbox employees is grim. The disconnect between his upbeat comments and the ongoing layoffs has reignited criticism about Microsoft's leadership and priorities.

What do you think? Is Nadella out of touch, or is this just tough business? Let us know in the comments.