In response to retirement rumours that emerged amid the latest Xbox division layoffs, Microsoft communications head Kari Perez insisted Spencer is here to stay.
She told The Verge: “Phil is not retiring anytime soon.”
Reports had hinted Spencer might step down after the next-gen console launch, citing internal sources and speculation of successor Sarah Bond but Microsoft has firmly rejected those claims.
This comes after Spencer revealed there would be further layoffs at Xbox “to position [Microsoft] Gaming for enduring success and allow us to focus on strategic growth areas”.
An internal memo provided to Insider Gaming reads: “Today we are sharing decisions that will impact colleagues across our organization.
“To position Gaming for enduring success and allow us to focus on strategic growth areas, we will end or decrease work in certain areas of the business and follow Microsoft’s lead in removing layers of management to increase agility and effectiveness.
“Out of respect for those impacted today, the specifics of today’s notifications and any organizational shifts will be shared by your team leaders in the coming days.
“I recognize that these changes come at a time when we have more players, games, and gaming hours than ever before.
“Our platform, hardware, and game roadmap have never looked stronger. The success we’re seeing currently is based on tough decisions we’ve made previously.
“We must make choices now for continued success in future years and a key part of that strategy is the discipline to prioritize the strongest opportunities.
“We will protect what is thriving and concentrate effort on areas with the greatest potential, while delivering on the expectations the company has for our business.”
This will be the latest round of layoffs at Xbox, with the company having let go of 1,900 staff members in January 2024 following the Activision Blizzard acquisition the previous October, and the closure of a number of studios in May 2024, including Arkane Austin, Roundhouse Games and Alpha Dog Games.
