Xbox Vice President Loses Job After Serving 37 Years, 'Seniority Doesn't Matter' | Microsoft layoffs

Microsoft has announced that it is cutting 4,800 jobs across the company immediately. This represents 2.1% of its total global workforce.

One name from Microsoft’s layoffs quickly drew attention online. Kevin LaChapelle, vice president of the Xbox platform, announced on LinkedIn that his 37-year career at Microsoft has come to an end.

LaChapelle is generally considered to be the head of the team that created Xbox backwards compatibility. This is a feature that allows Xbox One consoles to play Xbox 360 games.

He described watching Phil Spencer announce the program at E3 2015 as one of the most memorable moments of his career. LaChapelle also led the team that created Xbox Cloud Gaming.

“Sitting in the audience when Phil announced the program at E3 2015 was incredible. The audience reaction was incredible. I watched it with the leadership of the team that created our Cloud Gaming product,” LaChapelle wrote on LinkedIn.

“I firmly believe that all entertainment will eventually become streaming for you, wherever you are. I look forward to watching Xbox continue to evolve and wish the team nothing but success,” he wrote.

“I will say that one person really made a lasting impression on me during my time at Xbox, and I’d like to thank Kareem Choudhry for being the best manager I’ve had at Microsoft and ultimately someone I’m happy to call a good friend,” he concluded.

The post sparked a wave of reactions from the gaming and tech community. X account LayoffHedge summed up the sentiment bluntly: “Past achievements don’t matter. Seniority doesn’t matter.”

Microsoft Business Planner Cody Howard identified backward compatibility as one of the biggest differentiators in the Xbox market. Recruiter Mirza Dizdarevic noted that LaChapelle’s platform leadership has shaped how millions of people use Xbox.

One commenter, Maximillian Obasiolu, thanked LaChapelle for creating Windows Movie Maker. LaChapelle replied simply that he enjoyed building it.

Former Microsoft senior executive David Martini, a friend of LaChapelle’s since high school in 1982, also responded to the post. Quality Engineering Program Manager Melissa Moorehead said that backwards compatibility was the reason she personally used Xbox consoles at home.

Microsoft layoffs

The Xbox division is among the hardest hit by Microsoft’s layoffs. They will lose approximately a fifth of their employees. Around 1,600 Xbox roles were deleted on Monday alone. Another 1,600 will leave during fiscal year 2027. In total, Xbox is cutting 3,200 positions.

Xbox CEO Asha Sharma confirmed the extent of the restructuring in an email to employees. She admitted that the annual restructuring brings additional challenges.

She added that a return to growth in 2027 remains the goal. Microsoft HR Director Amy Coleman called the pace of technological change unprecedented in her 27-year tenure.

Microsoft has been the worst-performing megacap tech stock so far in 2026. Its shares have fallen 19% since last Friday. Investors worry that generative AI models could displace a wide range of enterprise software.