'Not anytime soon': Microsoft shuts down rumours of Xbox Chief Phil Spencer retiring amid mass layoffs

Microsoft has denied speculation that Xbox chief Phil Spencer is planning to retire, following a week of major restructuring across its gaming division. The company issued a statement confirming that Spencer, who has led Xbox since 2014 and now serves as CEO of Microsoft Gaming, is not stepping down “anytime soon”.

The clarification came after a rumour posted by Call of Duty-focused X account @TheGhostOfHope suggested that Spencer would exit the role after the next-gen Xbox launch, with Xbox President Sarah Bond positioned to take over. Microsoft swiftly responded.

“Phil is not retiring anytime soon,” said Kari Perez, head of Xbox communications, in a statement shared with The Verge. Microsoft’s communications lead Frank Shaw also addressed the rumour on X, calling it fabricated.

The timing of the rumour coincided with Microsoft’s announcement of over 9,000 job cuts, or roughly four percent of its total workforce. The Xbox unit bore the brunt, with several in-house studios hit by layoffs, including King, Raven Software, Sledgehammer Games, Rare, Turn10 Studios, Halo’s 343 Industries, and Zenimax Online Studios.

As part of the cuts, Microsoft cancelled the long-awaited Perfect Dark reboot and shut down its developer, The Initiative. Rare’s Everwild and an unannounced Zenimax MMO were also scrapped, along with multiple unannounced projects across the Xbox portfolio.

Phil Spencer, a key figure in the gaming industry and a Microsoft veteran since 1988, joined the Xbox unit in 2001. His leadership has spanned the launch of Xbox Game Pass, multiple console generations, and Microsoft’s acquisition of major studios. He became CEO of Microsoft Gaming in 2022.

In a memo to staff, Spencer acknowledged the difficult timing of the cuts, despite the platform’s current strength.

“I recognise 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,” Spencer wrote. “The success we’re seeing currently is based on tough decisions we’ve made previously. We must make choices now for continued success in future years and a key part of that strategy is the discipline to prioritise the strongest opportunities."