Microsoft Confirms Xbox Chief Phil Spencer Remains Despite Industry Speculation

Microsoft has officially stated that Xbox leader Phil Spencer won't be leaving his position in the near future, despite circulating rumors about his potential departure following recent massive workforce reductions.

The company recently terminated approximately 4% of its workforce (over 9,000 employees). While most job cuts occurred outside Microsoft's gaming division, Xbox studios faced substantial impacts. Projects like Rare's Everwild and the Perfect Dark reboot were canceled entirely, with The Initiative studio closing permanently.

The layoffs extended to other subsidiaries - Candy Crush studio King saw significant reductions, as did Bethesda's European teams. ZeniMax Online Studios canceled an undisclosed MMO project and downsized its development team, while studio head Matt Firor departed. Reports also indicate staff reductions at Forza developer Turn 10 and various Call of Duty studios.

Amid these developments, industry insider @TheGhostOfHope suggested Spencer might retire as Xbox CEO after the next-gen Xbox launch, with current Xbox President Sarah Bond potentially succeeding him. This speculation arose following criticism Spencer faced regarding ongoing layoffs since Microsoft's $69 billion Activision Blizzard acquisition.

Microsoft quickly addressed the rumors through Xbox Communications Head Kari Perez: "Phil is not retiring anytime soon." However, the wording leaves room for interpretation, as "anytime soon" remains undefined - whether referencing 2024, 2025, or beyond Microsoft's rumored 2027 next-gen Xbox launch.

During Spencer's tenure post-Activision Blizzard acquisition, Microsoft's gaming division has experienced severe workforce reductions:

• January 2024: 1,900 employees terminated
• Mid-2024: Arkane Austin (Redfall) and Tango Gameworks (Hi-Fi Rush) shuttered
• September 2024: Additional 650 gaming staff cuts
• May 2025: Major reduction of 6,000 employees (3% of total workforce)

Xbox's Expanding Game Portfolio Post-Acquisition

Following the Activision Blizzard purchase, Xbox now controls numerous established franchises:

Plus 68 other acquired properties

In June 2024, Spencer explained to IGN: "Running a sustainable business requires making difficult decisions I don't personally enjoy, but are necessary for growth."

Looking forward, Microsoft confirms all games featured in its June 2025 showcase remain on schedule, with their development studios secured. The company plans significant presence at August's gamescom event to showcase upcoming projects.