We present the first measurements of photoelectron spectra of atomic clusters embedded in superfluid helium (He) nanodroplets. Owing to the large absorption cross section of xenon (Xe) around 100 eV photon energy (4d inner-shell ionization), direct dopant photoionization exceeds charge transfer ionization via the ionized He droplets. Despite the predominant creation of Xe 2+ and Xe 3+ by subsequent Auger decay of free Xe atoms, for Xe embedded in He droplets only singly charged Xe + k , k = 1, 2, 3 fragments are observed. Broad Xe + ion kinetic-energy distributions indicate Coulomb explosion of the ions due to electron transfer to the primary Auger ions from surrounding neutral atoms. The electron spectra correlated with Xe ions emitted from the He nanodroplets contain a low-energy feature and nearly unshifted Xe photolines. These results pave the way to extreme ultraviolet (XUV) and x-ray photoelectron spectroscopy of clusters and molecular complexes embedded in He nanodroplets.