Bernie Sanders Criticizes Microsoft Over Xbox Layoffs and Price Hikes
Microsoft recently announced mass layoffs affecting 4,800 people, including 3,200 at Xbox, and now US Senator Bernie Sanders (D-VT) has criticized the technology giant for cutting staff at a time of significant profits.
Microsoft recently announced mass layoffs affecting 4,800 people, including 3,200 at Xbox, and now US Senator Bernie Sanders (D-VT) has criticized the technology giant for cutting staff at a time of significant profits.
Sanders highlighted Microsoft's $100 billion profit in 2025, CEO Satya Nadella's $96 million pay, and the $12.5 billion tax savings from President Trump's plan. He disputed the notion that corporate tax breaks lead to job creation, condemning Xbox layoffs and the console's price increases.
Despite Microsoft's strong financial performance, Xbox faced challenges, with Xbox CEO Asha Sharma describing the business as 'not healthy.' Sharma noted unsuccessful strategic bets by past leaders, resulting in low operating margins compared to other Microsoft units.
Microsoft's stock has dropped 19% this year, with Xbox's initiatives like Game Pass and studio acquisitions not meeting expectations. The company is divesting from five studios, including selling Ninja Theory and Undead Labs.
