Microsoft to Cut 9k Workers in Second Wave of Major Layoffs

Post by 999900000999 » Wed, Jul 02, 2025, 3:06 PM UTC

mjr00 wrote: post #4

strict9 wrote: post #3

Surprisingly no mention of AI in an article about mass layoffs at a tech company. Wonder if that line has finally had all the juice squeezed from it to explain away layoffs and outsourcing.

AI works as a smokescreen when doing product development layoffs, but you can't really use it for sales, which is still very human-to-human, or when canceling entire projects like they're doing in XBox Game Studios.

Post by ChrisArchitect » Wed, Jul 02, 2025, 3:08 PM UTC

Post by _DeadFred_ » Wed, Jul 02, 2025, 3:14 PM UTC

idkwhattocallme wrote: post #9

For the most part, I'm indifferent to layoffs. Companies over hire and then course correct. It's part of the game. But for MSFT, it rubs me the wrong way. In the past 5 years, their stock has soared (150% on stock and doubled in valuation). They are insanely profitable ($82B profit). They are diverse (no existential business risk). The fact that they are unceremoniously laying off 30K of the people that helped them g…

Post by atomicnumber3 » Wed, Jul 02, 2025, 3:15 PM UTC

runjake wrote: post #14

idkwhattocallme wrote: post #9

For the most part, I'm indifferent to layoffs. Companies over hire and then course correct. It's part of the game. But for MSFT, it rubs me the wrong way. In the past 5 years, their stock has soared (150% on stock and doubled in valuation). They are insanely profitable ($82B profit). They are diverse (no existential business risk). The fact that they are unceremoniously laying off 30K of the people that helped them g…

Didn't Satya or somebody state in recent months that it was a tactic to get rid of low performers? I believe Meta is doing something similar. Edit: Allegedly not. https://www.financialexpress.com/life/technology-microsoft-c... "Nadella addressed the recent layoffs, clarifying that the decision was not based on individual job performance. “This is a structural change, not a reflection of how people were performing,” N…

Post by surgical_fire » Wed, Jul 02, 2025, 3:21 PM UTC

999900000999 wrote: post #11

mjr00 wrote: post #4

Earlier quoted context omitted.

AI works as a smokescreen when doing product development layoffs, but you can't really use it for sales, which is still very human-to-human, or when canceling entire projects like they're doing in XBox Game Studios.

I knew this was coming when Microsoft brought Activision. As ex game industry I nearly started crying at the news. Mergers always lead to layoffs, games aren't doing great as they're not essential in an iffy economy. Microsoft is seeing the writing on the wall and cutting internal studios. It's much cheaper to just pay 3rd parties to release on Gamepass vs having to fund an entire games development. I don't think we…