As the head of Xbox, Phil Spencer recently shared his thoughts on the massive layoffs that have hit Microsoft in an email sent to the tech giant’s gaming divisions.

The layoffs, which have affected several companies under Microsoft’s gaming wing, such as 343 Industries and Bethesda, have been a source of concern for many employees. Spencer acknowledged the reasons for the layoffs and suggested that they may be related to recent changes at Xbox Game Studios, which have raised questions about the future involvement of certain studios with major franchises.

The layoffs, which were officially announced by Microsoft CEO Satya Nadella in a public blog post, come on the heels of a rocky fiscal quarter that saw a decline in Microsoft’s net income but an increase in revenue from cloud-based services. Nadella stated that the cuts were a necessity as the company looks for new avenues to grow amid an ongoing economic recession and to keep Microsoft prepared for future economic downturns. Those affected by the layoffs were assured that if given a 60-day notice, they would be compensated in-line or above the requirements of their respective home country.

Spencer’s email, which was acquired by Kotaku, followed shortly after Nadella’s blog post and aimed to address the impact of the layoffs on everyone under the Xbox umbrella. He reiterated what employees had been told by team leaders, saying the cuts “set us up for the long-term success of our products and business” but acknowledged that the decisions that had to be made were difficult and painful. Spencer assured employees that there will be avenues for leadership to connect and answer any questions they may have and promised to be as transparent as possible, although he couldn’t provide more details at the moment.

The layoffs have had a significant impact on Xbox Game Studios, with at least one studio being restructured in its wake. 343 Industries seemed to have taken the biggest hit, as the campaign team for Halo Infinite was “restructured,” the game’s director Joe Staten announced he was leaving the studio to rejoin Xbox Publishing, and the studio would not be leading development of future Halo titles, instead, it will serve as support. The changes were met with blowback from several former developers on social media who called out poor leadership at 343 and Microsoft as one of the biggest reasons for Halo Infinite’s rough development.

It remains to be seen how much further the layoffs could impact Xbox, especially as Microsoft’s pitch to acquire Activision-Blizzard may have hit another major roadblock in the European Union. A report ahead of the layoffs said the EU’s antitrust board was going to object to the acquisition, potentially adding to the antitrust issues the possible deal is facing from the US Federal Trade Commission. Whether the deal ultimately gets approved or not, there’s no denying 2023 has gotten off to a rough start for Microsoft.