Microsoft Lays Off Xbox VP Kevin LaChapelle After 37 Years
Jul 9, 2026 | By Startuprise io

Kevin LaChapelle spent 37 years at Microsoft without ever posting on LinkedIn. That changed on Tuesday, one day after he was laid off along with about 1,600 Xbox employees as part of Microsoft's AI-driven restructuring.
During his long career, LaChapelle rose to become Vice President of the Xbox Platform and helped lead major projects such as cloud gaming and backward compatibility. After decades of contributing to the companys growth, his career at Microsoft came to an unexpected end.
Kevin LaChapelle said he was one of the Xbox employees laid off, bringing his 37-year career at Microsoft to an end. Looking back, he said his proudest achievement was leading the team that created the Xbox Backward Compatibility program. He also remembered the excitement of unveiling the feature at E3 2015 and said the audience's reaction was something he would never forget.
He later went on to lead the team behind Xbox Cloud Gaming. LaChapelle said he believes streaming is the future of entertainment and wished the Xbox team continued success in the years ahead.
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As Microsoft carried out its latest round of layoffs in the Xbox division, Kevin LaChapelle revealed that he was one of about 1,600 Xbox employees who lost their jobs as part of the company's AI-driven restructuring.
LaChapelle's LinkedIn account, created in May 2005, had remained inactive for years. His first-ever post became a farewell message after leaving Microsoft, with many people on social media expressing their support and sympathy.
One of Kevin LaChapelle's biggest achievements was leading the Xbox Backward Compatibility program, which allowed players to enjoy Xbox 360 and original Xbox games on newer consoles without needing older hardware. Looking back at the feature's unveiling at E3 2015, he said the audience's reaction was unforgettable.
LaChapelle later led the engineering team behind Xbox Cloud Gaming, formerly known as xCloud. The service lets users stream games on phones, tablets, and PCs without needing a dedicated gaming console.
In an email to employees, Xbox CEO Asha Sharma said the company was making layoffs because the business was "not healthy." She explained that Xbox was operating with profit margins that were three to ten times lower than those of similar platforms and publishing companies.
Sharma, who also shared the email on X, said the layoffs were not a reflection of employees' talent or dedication but were part of the company's efforts to improve its business.
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