Microsoft CEO Satya Nadella addressed the ongoing corporate restructuring and layoffs at Xbox during a podcast appearance in September 2026. Speaking on the Sources Podcast with host Alex Heath, Nadella defended the changes implemented by new Xbox CEO Asha Sharma.
Podcast defense of restructuring
Nadella expressed confidence in the direction of the gaming division. He pointed to the company's intellectual property assets and the operational changes currently underway.
"I feel fantastic about the IP we have right now"
Satya Nadella, Microsoft CEO
"There's some amount of streamlining the team is doing, and Asha is doing, which is great to see"
Satya Nadella, Microsoft CEO
Sustainable business goals
The Microsoft chief executive explained the motivation behind the reduction in workforce and studio reorganizations. He stated that the strategy focuses on long-term viability for both hardware and software operations.
"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."
Satya Nadella, Microsoft CEO
