Bernie Sanders Criticizes Microsoft Over Xbox Layoffs and Price Rises

Sen. Bernie Sanders has criticized Microsoft over recent Xbox layoffs and console price increases, arguing that they demonstrate corporate tax breaks do not lead to job creation.

Pointing to Microsoft's profits, tax breaks, and CEO pay, Sanders highlighted the layoffs as evidence against the effectiveness of corporate tax incentives. Microsoft's decision to lay off 3,200 Xbox staff members and increase console prices has sparked controversy and raised concerns about job security within the company.

Additionally, Microsoft's announcement of significant price hikes for Xbox consoles, attributed to the ongoing components crisis, has further fueled the debate over corporate responsibility and the impact of tax policies on job stability.

Despite Microsoft's record profits in 2025, the company's Xbox division has faced challenges, leading to a decrease in profitability and significant investments in content and platform development. The layoffs at Xbox are part of broader restructuring efforts within Microsoft, affecting thousands of employees across the organization.