Microsoft CEO Satya Nadella called Xbox's ongoing job cuts "great to see" during a Sources Podcast with Alex Heath. The comment follows recent layoffs that eliminated 268 additional positions on top of 1,600 earlier this year. Xbox CEO Asha Sharma leads the restructuring effort that has folded studios together and reshuffled franchises like Halo. Chief Content Officer Matt Booty noted the company is roughly three-quarters through the announced cuts, with more changes expected before the fiscal year ends. Nadella emphasized the need to invent a sustainable business model to deliver gaming to more people across PCs and Xbox platforms.

Calling the cuts "great to see" probably lands very differently for the thousands of employees who lost their jobs this year than it does from Nadella's position. Sharma has defended the restructuring by pointing to Xbox's margins, which she says trail comparable platform and publishing businesses by 3 to 10 times. The layoffs are part of a broader plan to streamline Xbox operations following recent franchise reshuffling and studio consolidations.