Xbox head Phil Spencer is not retiring despite numerous rumors otherwise claiming that he's set to say goodbye to the company.
The rumors and the subsequent clarification come after news broke out that Microsoft laid off thousands of employees, affecting its gaming division.
Phil Spencer Is Sticking Around
Xbox's Head of Communications Kari Perez confirmed to The Verge that Spencer is not going anywhere.
"Phil is not retiring anytime soon," said Perez.
All the speculation began when a known "Call of Duty" leaker named GhostOfHope claimed that Spencer is retiring "after the launch of the next generation Xbox."
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
Microsoft's Layoffs
July is starting off on the wrong foot for 9,000 Microsoft employees who have been laid off. CNN notes in its report that this is the largest number of employees the company has laid off since 2023, when it laid off 10,000 employees.
In a statement, a Microsoft spokesperson said that the company continues "to implement organizational changes necessary to best position the company and teams for success in a dynamic marketplace."
The latest round of layoffs has affected Xbox, Microsoft's gaming division. Due to the layoffs, a game from the makers of "The Elder Scrolls Online" have been scrapped.
Originally published on Player One
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