Major shake-up at Xbox: Insider speaks of historic job cuts and a “dagger” in the console’s back

A sudden leadership change at Microsoft’s gaming division has seen former CEO Phil Spencer and former Xbox President Sarah Bond replaced with immediate effect by Asha Sharma, who previously led the company’s CoreAI division. In light of her background, some fans are concerned about the future direction of Xbox Gaming. In her first interview, however, the new chief sought to ease those worries. She stressed that the brand’s creative identity – and Xbox’s role as Microsoft’s gaming flagship – will once again move to the forefront.

However, much of the community remains skeptical – not least due to recent leaks. On NeoGAF, well-known insider SneakerSO claims that Microsoft is preparing one of the largest waves of layoffs in its history. If true, this could point to a stronger shift toward AI in gaming – exactly the outcome many fans feared after AI expert Asha Sharma took over.

The insider further argues that the departure of Phil Spencer and Sarah Bond is like a “dagger” to Xbox hardware – implying that the traditional console could be at risk. However, they provide no concrete sources to support these claims. Until Microsoft releases an official statement, fans and employees can still hope for a different outcome. Meanwhile, Asha Sharma’s decision to publish her Xbox gamertag has added fresh momentum to the ongoing debate within the community.