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Phil Spencer’s Email to Staff Impacted by Xbox Layoffs Angers Players

July 2, 2025
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Phil Spencer’s Email to Staff Impacted by Xbox Layoffs Angers Players
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Xbox just got hit with massive layoffs across several gaming divisions. However, players are angry about an email allegedly sent to staff by Phil Spencer. According to reports, the Microsoft Gaming CEO told employees Xbox was doing better than ever before letting them go.

Xbox Layoffs Phil Spencer Email Upsets Players

Rumors of mass Xbox layoffs have been swirling over the past month. Unfortunately, it appears the mass cutbacks happened this morning. Players were further upset by the firings, though, when an email sent to staff by Phil Spencer was leaked online. In a July 2 report by Windows Central, the outlet verified the message the Microsoft CEO had sent out to employees impacted by the layoffs.

Players were specifically upset over the email leading with Spencer talking about how well Xbox is currently doing. “I recognize that these changes come at a time when we have more players, games, and gaming hours than ever before. Our platform, hardware, and game roadmap have never looked stronger.” On social media, gaming fans reacted to the news with criticism, calling out the CEO for the tone-deaf email and explanation for the mass layoffs.

“Absolutely bonkers to lead with ‘we’re doing great, better than ever even, but still go f**k yourselves,’” a Reddit user wrote. Another commenter sarcastically replied, “No, our success has nothing to do with your work, it’s our management laying people off a few months ago that did that.” One poster simply exclaimed, “I’m sure this makes people feel better. A nice hearty ‘you are unemployed, sorry’ from a guy making 10 mill a year.”

Microsoft’s Spending Spree Comes Under Fire

Another criticism many players had for Microsoft was their recent spending spree acquiring studios like Activision and Bethesda. The American publisher spent over a hundred billion to buy both studios in the past few years. With Xbox constantly scooping up studios, it’s led many to ask how layoffs of this scale can even be possible.

The other issue many took with Phil Spencer’s email is his apparent defense of management. At least the way the message reads, users believed he was saying Xbox’s current success is the result of management decisions — and not the employees working hard on the brand. “We’re doing great, but you’re fired. Need to protect the management team’s bonuses,” a skeptical Xbox player said after reading the email.

I’ve also seen quite a few users on social media swearing off the games industry altogether. People who wanted to get a job in games but are now deciding against it. And I can’t blame them. It seems like we can’t go a single month without massive layoffs happening. If it’s not on the media side, it’s at game publishers and studios. It’s starting to feel like no one is safe out here.

The post Phil Spencer’s Email to Staff Impacted by Xbox Layoffs Angers Players appeared first on VICE.

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