Xbox Head Phil Spencer Addresses Layoffs, Call of Duty Future in New Internal Memo

In the wake of widespread layoffs across Microsoft’s gaming division, Xbox chief Phil Spencer has addressed employees in a new internal memo that sheds light on both the company’s restructuring efforts and the upcoming integration of Call of Duty into Game Pass.

Earlier this week, Microsoft announced layoffs affecting approximately 1,900 employees across Xbox, Bethesda, and Activision Blizzard, roughly 8% of its gaming workforce. This massive reorganization came just months after Microsoft finalized its $69 billion acquisition of Activision Blizzard, marking a significant shift in the gaming landscape. Spencer’s memo, obtained by The Verge, seeks to reassure employees and clarify the company’s vision going forward.

“This is a challenging moment for our teams,” Spencer wrote. “The leadership across Xbox is committed to navigating this with transparency, empathy, and a long-term perspective on how we move forward together.”

Spencer emphasized that the layoffs were part of a broader strategic alignment and not a sign of instability. “We are focused on a sustainable path for our studios and business,” he added. He also acknowledged the “incredible talent and dedication” of those affected and reaffirmed Microsoft’s commitment to supporting teams during the transition.

The memo also touched on the long-anticipated arrival of Activision titles on Xbox Game Pass, especially Call of Duty. Confirming what many have speculated, Spencer stated that the integration will begin “later this year,” though he did not specify which entries from the franchise would be coming first.

“Bringing more of our iconic games to players through Game Pass is a key part of our vision,” said Spencer.

While exact Game Pass plans remain under wraps, Spencer’s comments suggest that Game Pass will be a major pillar in Microsoft’s strategy to leverage its newly acquired IPs. With Call of Duty representing one of the biggest franchises in gaming history, its inclusion could significantly boost the subscription service’s value and reach.

For gamers and industry watchers alike, Microsoft’s next steps bear close attention. Between its evolving Game Pass strategy and internal shakeups, 2024 could be a defining year for Xbox.