Microsoft lays off 9,000 people due to AI, impacting the Xbox gaming division.
According to (BBC) reports, Microsoft confirmed last week that it would lay off 9,000 employees, affecting 4% of Microsoft's global workforce of 228,000, with multiple departments impacted, particularly the Xbox gaming division.
Game projects affected by layoffs, including the reboot of Perfect Dark and others like Everwild, will be canceled. The Initiative, the studio responsible for the Perfect Dark reboot, will also be closing.
A Microsoft spokesperson stated that the purpose of this wave of layoffs is to implement necessary organizational changes to position the company for optimal success in a constantly changing market.
Microsoft previously revealed plans for large-scale investments in AI, expecting to invest $80 billion to build large data centers to train AI models.
Further reading:
The United States leads the AI race! Microsoft plans to invest $80 billion to build AI data centers.
Xbox executive suggests using AI to ease the pain of layoffs.
After the news of mass layoffs, Xbox game studios' executive producer Matt Turnbull posted on LinkedIn, suggesting that laid-off employees could use AI tools (like ChatGPT) to help alleviate the emotional burden of unemployment.
Turnbull stated in the article:
I know that these types of tools can evoke strong feelings in people, but if I don't attempt to provide the best advice in this situation, that would be my oversight. I have been trying to use generative AI tools (like ChatGPT or Copilot) to help reduce the emotional and cognitive burden brought on by unemployment.
Turnbull detailed several AI application suggestions, including career planning, improving resumes, building networks, and even suggested using AI to reframe unemployment experiences, reminding individuals of their areas of expertise.
Image source: X Xbox executive suggests using AI to alleviate unemployment pain.
Netizens criticize Xbox executive's comments as inappropriate.
Turnbull's comments, shared by game journalist Rebs Gaming on X (formerly Twitter), sparked a strong backlash from netizens. As of the time of writing, Turnbull's post has also been deleted.
Netizens have criticized that the timing of this post was really poor. Some netizens said:
It's really sad to see people using AI to replace critical thinking or even basic thinking skills. The level of dependency on AI is confusing.
Another netizen criticized:
These high-level executives act with no consequences and still receive millions in bonuses. It's shocking how they are so disconnected from those who infuse the soul into games; Microsoft is becoming a version of EA.
However, some netizens believe that although Turnbull's timing was poor, it shows he had no ill intentions and just wanted to help the laid-off employees, though he did not consider his wording carefully.
After the explosion of generative AI applications, many tech giants are vying for related business opportunities. However, these giants should also consider how to bridge the cognitive gap between top executives and frontline employees during the AI transformation process, as well as the importance of effective communication strategies during mass layoffs.
Further reading:
AI triggers a wave of unemployment! American college graduates face 'unemployment upon graduation', with thousands laid off by major global companies.
'Microsoft's massive layoffs due to AI! Xbox executive: Laid-off employees can use AI to ease the pain, faced backlash and deleted post' was first published on 'Crypto City'.