Xbox Faces Mass Layoffs Under New Leadership, Insider Warns

Under the stewardship of its new Chief Executive, the Xbox division may be on the brink of one of the most sweeping “reorganizations” in its history, a transition expected to precipitate significant staff reductions.

Industry insider SneakerSO recently claimed on the NeoGAF forum that the latest executive shifts could profoundly impact Xbox’s future hardware roadmap. According to the source, Sarah Bond’s departure from her role as President is a pivotal indicator of the internal upheaval currently unfolding. Bond was a long-time protégé of former Microsoft Gaming head Phil Spencer, who had led the division since 2014 before his exit earlier this year.

The newly appointed CEO of Microsoft Gaming, Asha Sharma, formerly spearheaded Core AI at Microsoft and is a vocal proponent of artificial intelligence, viewing it as a vital tool for addressing global demographic shifts. Reflecting on these challenges in August 2025, she remarked: “I wonder if my son will even have classmates in the future; birth rates are plummeting.” Sharma highlighted a London-based clinic where AI is being used to improve pregnancy success rates while lowering costs, suggesting that such technologies can democratize healthcare access and significantly bolster clinical efficiency.

Source: iXBT.games