Microsoft CEO comments on ongoing ‘Xbox Reset’

Earlier this year, Microsoft kicked off the first part of its ‘Xbox Reset’ – aka a suite of mass firings and company consolidations. With part 2 of this reset having now officially commenced, the CEO of Microsoft was asked about the current happenings, with Satya Nadella claiming this ‘steamlining’ to be “great to see.”

Taking part in an interview with the ‘Sources Podcast’ Microsoft CEO Satya Nadella was asked about a range of topics from Copilot to AI; more AI and even more AI. In discussing the future of Xbox in particular however, Nadella offered some rather tone deaf comments, stating:

“I feel fantastic about the IP we have right now. 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.”

When asked specifically about the suite of mass layoffs which have occurred throughout 2026 (and will continue to occur over the coming months), Nadella as expected steered away from any accountability, simply claiming that:

“There’s some amount of streamlining the team is doing, and Asha is doing, which is great to see. And 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 for games across both PCs and Xboxes.”

The use of the term ‘streamlining’ in particular has struck a nerve with many, given that Nadella is referring to over 3000 employees and developers which have been (and will be) laid off.

Of course, Satya Nadella is the CEO of one of the biggest corporations in the entire world, and so them being disconnected from the populace is none too surprising. Still, the lack of even a pretend amount of compassion is rather jarring to see. The full interview can be found HERE.

KitGuru says: What do you think of Nadella’s statement? Would you rather he have given some fake platitudes, or do you appreciate the transparent lack of consideration? Let us know down below.

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