Phil Spencer

Microsoft allegedly reneged on a pledge to negotiate severance with laid-off Bethesda Montreal developers, instead offering the minimum legal payout without union bargaining, according to the Bethesda Game Studios union. The union claims the company also terminated workers' health benefits and has filed a complaint, urging the public to send feedback to Microsoft.

Xbox VP of engineering Jared Palmer has left Microsoft after a brief tenure to join AI company Cognition. His departure comes during a period of major restructuring under new Xbox leader Asha Sharma, who has implemented significant layoffs and studio divestments.