Microsoft’s Xbox CEO Just Explained Why the Company Is Laying Off 9,000 People. It’s Not Great

[Timber Rattler]

https://www.inc.com/jason-aten/microsofts-xbox-ceo-just-explained-why-the-company-is-laying-off-9000-people-its-not-great/91209841

Earlier this week, Microsoft confirmed it was laying off 9,000 people, according to The Seattle Times. This follows a round of layoffs in May, and brings the total number to more than 15,000 people company-wide.

According to an email from Xbox CEO Phil Spencer, a number of the cuts came in his division, though the company did not reveal specifics about how many from which area were affected.

The layoffs aren’t especially surprising, considering that Microsoft is just one of many tech companies to be trimming its headcount. In most cases, the cuts come as companies try to free up resources to pour into the expensive pursuit of AI in everything.

(snip)

Make no mistake—this isn’t about performance. Spencer even says so: “These decisions are not a reflection of the talent, creativity, and dedication of the people involved.” This isn’t about shrinking revenue, either—Microsoft just posted record profits.

The truth is, Microsoft is betting big on AI. That’s the real story. Not just at Xbox, but across the company. Microsoft is pivoting hard toward an AI-first future, and these layoffs are part of that shift. It turns out all those Nvidia chips cost a lot of money, and the quickest way to find some extra money seems to be to stop handing out paychecks.

EXCERPT

[Timber Rattler]

And then this happened...

After 9,000 Layoffs, Microsoft Boss Has Brutal Advice for Sacked Workers

https://futurism.com/microsoft-boss-ai-advice

Microsoft has laid off about 9,000 workers in the midst of a newly-announced $80 billion AI investment — and apparently, those who just lost their jobs should be talking to ChatGPT about it.

As Aftermath reports, an executive producer at Microsoft-owned Xbox ended up with egg on his face after suggesting that laid off workers pour their hearts out to AI.

"These are really challenging times, and if you’re navigating a layoff or even quietly preparing for one, you’re not alone and you don’t have to go it alone," that producer, Matt Turnbull, said in a since-deleted LinkedIn post that Aftermath thankfully screenshotted for posterity. "No AI tool is a replacement for your voice or your lived experience. But at a time when mental energy is scarce, these tools can help get you unstuck faster, calmer, and with more clarity."

"I know these types of tools engender strong feelings in people, but l'd be remiss in not trying to offer the best advice I can under the circumstances," he continued. "I've been experimenting with ways to use [large language model] Al tools (like ChatGPT or Copilot) to help reduce the emotional and cognitive load that comes with job loss."

Yes, you read that right: a Microsoft boss was telling those just laid off by the tech giant that they should use chatbots — run or funded by the company that just fired them — to avoid crying on a company shoulder.