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Microsoft has denied rumors that Xbox executive Phil Spencer will retire following the company's huge layoffs. Spencer, who has managed Xbox since 2014 and is currently CEO of Microsoft Gaming, will not retire "anytime soon," the firm announced in a statement following the latest wave of layoffs that hit various Xbox studios and resulted in the cancellation of multiple projects.
Phil Spencer, the boss of Xbox, is not retiring
Rumours about the Xbox chief's retirement appeared on Wednesday after a source said so. Call of Duty channel @TheGhostOfHope said on X that Spencer would step down as Microsoft Gaming CEO following the launch of the next-generation Xbox, with Xbox president Sarah Bond replacing over.
EXCLUSIVE: Phil Spencer will be retiring from his role as CEO of Microsoft Gaming after the launch of the next generation Xbox.
— Hope (@TheGhostOfHope) July 2, 2025
Phil Spencer is working closely with Sarah Bond and her team to ensure a smooth transition for her take over as CEO of Microsoft Gaming once he… pic.twitter.com/LDqB4BW8ER
In a letter to The Verge, Microsoft flatly denied the claim. "Phil is not retiring anytime soon," Kari Perez, the head of Xbox communications, told the outlet. Frank Shaw, Microsoft's communications head, also disputed the report on X, calling it a fake.
so long as by "summed it up" you mean "made it up."
— Frank X. Shaw (@fxshaw) July 2, 2025
Spencer, an industry star who has been the face of Xbox for over a decade, joined the company in 2001 after holding multiple positions at Microsoft. In 2014, he was named the leader of Xbox, Xbox Live, Xbox Music, Xbox Video, and Microsoft Studios, and he will be elevated to Microsoft Gaming CEO in 2022.
Microsoft and Xbox Layoffs
Spencer's retirement was brought up after Microsoft revealed on Wednesday that it was cutting off 4% of its staff, or more than 9,000 people. The most recent round of layoffs struck the company's gaming sector hard, with layoffs announced at many first-party firms, including King, Raven Software, Sledgehammer Games, Rare, Halo firms, Turn10 Studios, and Zenimax Online Studios.
The Xbox parent company also canceled the Perfect Dark relaunch and closed down its developer, The Initiative. Other abandoned projects include Rare's action-adventure game Everwild and Zenimax Online's unannounced MMO. Xbox will also discontinue numerous unannounced projects in its portfolio.
Spencer confirmed the layoffs at the game division in a statement to workers, saying the decision would secure Xbox's long-term success.
"I know that these changes are occurring at a time when we have more players, games, and gaming hours than ever before. "Our platform, hardware, and game roadmap have never looked better," Spencer stated in an internal memo. "The current success is the result of harsh decisions we took in the past. We must make decisions today to ensure future success, and one critical component of that plan is the discipline to select the best prospects."
