Xbox Backwards Compatibility Architect Among 4,800 Cut in Microsoft Layoffs

Microsoft's latest round of layoffs hit 4,800 employees across the company, and among those let go was Kevin LaChapelle — a 37-year Microsoft veteran who helped build one of Xbox's most celebrated features: backwards compatibility. LaChapelle confirmed his departure on LinkedIn.

LaChapelle joined Microsoft in 1989 as a software design engineer and eventually moved into Xbox during the Xbox 360 era. He led the engineering team that delivered the backwards compatibility program on Xbox One — announced at E3 2015 — which let players run Xbox 360 games on the newer hardware, later extending to Xbox Series X|S as well. "Sitting in the auditorium when Phil announced the program at E3 2015 was incredible. The audience's reaction was unbelievable," he wrote. The program received its final catalog update in November 2021, adding 70+ original Xbox and Xbox 360 titles. After that, LaChapelle moved on to lead xCloud — now Xbox Cloud Gaming — from conception through launch as vice president and general manager. He remains a believer in the technology: "I am a firm believer that all entertainment will eventually become streamed to you wherever you are."

The broader layoffs reflect Microsoft's struggle to make several strategic bets pay off. Xbox Game Pass in particular failed to convert enough PC and cloud users into subscribers, according to analysts. The 4,800 cuts represent roughly 2.1% of Microsoft's global workforce. Xbox itself is losing 1,600 jobs immediately, with another 1,600 expected over the next year. On top of the headcount reductions, Microsoft is divesting at least five studios: Ninja Theory and Undead Labs have been sold to undisclosed buyers, Compulsion Games and Double Fine are going independent, and Arkane Lyon has entered a formal consultation process under French labor law — a process that will determine the fate of the studio and its in-development game, Marvel's Blade.

LaChapelle's exit puts a human face on cuts that are reshaping Xbox at a structural level. He closed his LinkedIn post wishing the team success, but the loss of someone who shepherded both backwards compatibility and cloud gaming from the ground up underlines just how deep these reductions go.