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Xbox Layoffs, Tesla's New Model Y, $12.8M Lottery Dispute | Diet TBPN

July 7, 2026

AI Summary

5 min read

Happy July 4th weekend is in the rearview, and the TBPN crew is back with a news roundup that spans Xbox layoffs, a new Tesla Model Y, a Ferrari with a manual transmission, and a $12.8 million lottery ticket dispute in Arizona. The dominant theme is corporate restructuring and the messy human stories that come with it — from Microsoft's gaming division admitting it is "not healthy" to a Circle K manager who allegedly bought leftover lottery tickets that turned out to be worth millions.

Xbox Cuts Deep, Admits Business Is "Not Healthy"

Microsoft's newly appointed Xbox CEO, Asha Sharma, announced 3,200 layoffs by the end of fiscal year 2027, with 1,600 taking effect immediately. The move is notable not just for its scale — Xbox/Microsoft Gaming has around 16,000 employees, so this is roughly a 20% cut — but for the candor of the announcement. Sharma posted her full email to employees on X, and it is unusually direct about the business's problems.

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What you'll learn

  • 1 (00:28) **Host Banter & July 4th Recap** - The hosts share stories about their July 4th weekends, including a white party, a wedding, and the shift from fireworks to drone shows in LA due to fire risk.
  • 2 (03:28) **Xbox Layoffs: 3,200 Jobs Cut by 2027** - New Xbox CEO Asha Sharma announces major layoffs, citing the business is "not healthy" in a candid internal email posted on X.
  • 3 (05:38) **Xbox Spinning Out Game Studios** - As part of the restructuring, Xbox will spin out several acquired studios including Compulsion Games, Double Fine, Ninja Theory, Undead Labs, and Arkane.
  • 4 (07:16) **Will Xbox Be Spun Out of Microsoft?** - The hosts question whether Xbox is too far from Microsoft's core enterprise and AI mission, and whether it could become a standalone entity.
  • 5 (09:09) **Strategic Analysis of Announcing Future Layoffs** - The hosts debate the morale and strategic implications of announcing 1,600 layoffs now with another 1,600 to come by 2027.
  • 6 (11:48) **Microsoft's Layoff History & Stack Ranking Culture** - The broader Microsoft layoff of 4,800 employees is discussed in the context of the company's historic "stack ranking" performance review system.
  • 7 (16:55) **Is There Cause for Optimism at Xbox?** - The hosts conclude Xbox is the hardest gaming platform to be excited about, lacking the strong IP of PlayStation or the dominance of Valve/PC gaming.

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Guests on this episode

Show Notes

Diet TBPN delivers the best of today’s TBPN episode in 30 minutes. TBPN is a live tech talk show hosted by John Coogan and Jordi Hays, streaming weekdays 11–2 PT on X and YouTube, with each episode posted to podcast platforms right after.


Described by The New York Times as “Silicon Valley’s newest obsession,” the show has recently featured Mark Zuckerberg, Sam Altman, Mark Cuban, and Satya Nadella.


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