The massive layoffs at Xbox have now spilled into the political arena, with Senator Bernie Sanders forcefully condemning Microsoft after the company cut thousands of jobs.

The independent lawmaker dismissed the official rationale offered by company leadership and instead highlighted what he called a glaring contradiction: a multibillion-dollar corporation that secured major tax advantages under the Trump administration still chose to shed workers on a massive scale.

Sanders Slams Microsoft

In a post on his official X account, Sanders criticized Microsoft’s recent reduction of more than 3,000 employees and took aim at U.S. fiscal policy more broadly.

He noted that Microsoft was among the companies that benefited from tax relief enacted during Donald Trump’s presidency.

According to Sanders, that concession failed to translate into stable employment for its gaming division.

“Last year, Microsoft made $101 billion in profits, got a $12.5 billion tax break from Trump & paid its CEO $96 million,” Sanders tweeted. “This year, it’s raising the price of an Xbox by $150 & eliminating 3,200 jobs. Please don’t tell me corporate tax breaks create jobs. It never trickles down.”

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Bernie Sanders dice

Why Did Xbox Lay Off Thousands of Workers?

The layoffs, which primarily affect Xbox-related staff, were formally announced yesterday by Asha Sharma, head of Microsoft’s video game business. In her internal memo, Sharma described the gaming unit’s financial performance as deeply troubled, necessitating a comprehensive reset across operations.

Microsoft has also placed several wholly owned studios such as Undead Labs, Ninja Theory, Double Fine, and Compulsion Games on the market. These developers now await potential buyers to sustain their ongoing projects and avoid outright closure.

Xbox’s current strategy appears overwhelmingly focused on cost-cutting and bottom-line performance. A former id Software employee, for instance, revealed that roughly half the staff at the Doom studio, including technical personnel, were let go. The programmer added that while the studio’s id Tech engine is widely regarded as the best first-person shooter engine, company executives do not care.

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