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Xbox parent company Microsoft has made headlines as of late for its visceral layoffs of over 9,100 employees last month. Resulting in the cancellation of Everwild, Perfect Dark and Elder Scrolls Online developer Zenimax Online Studios’ next MMO, as well as the closure of entire studios, Microsoft’s actions have undeniably harmed thousands.
Following the layoffs, one Xbox producer told laid off employees to use AI tools such as Microsoft Copilot to “reduce the emotional and cognitive load that comes with job loss”. Now, Microsoft CEO Satya Nadella has boasted that “Microsoft is thriving” despite the recent layoffs.
In a statement shared on the official Microsoft Blog and with employees, Nadella expressed “sincere gratitude to those who have left”, referring to the 9,000 laid off workers, for “helping build the foundation we stand on today”.
“By every objective measure, Microsoft is thriving,” the CEO continued. “Our market performance, strategic positioning, and growth all point up and to the right. We’re investing more in CapEx than ever before. Our overall headcount is relatively unchanged, and some of the talent and expertise in our industry and at Microsoft is being recognized and rewarded at levels never seen before. And yet, at the same time, we’ve undergone layoffs.”
Nadella claimed that Microsoft has learned that “success is not about longevity. It’s about relevance”, after 50 years of the company being the go-to for personal computing. “Our future won’t be defined by what we’ve built before, but by what we empower others to build now,” he continued.
The Microsoft CEO spent a lengthy amount of his statement on the importnace of AI, something that reminds the executive “of the early ’90s, when PCs and productivity software became standard in every home”.
“What does empowerment look like in the era of AI?” the CEO with a net worth of $1.1 billion at the time of writing asked. “It’s not just about building tools for specific roles or tasks. It’s about building tools that empower everyone to create their own tools. That’s the shift we are driving – from a software factory to an intelligence engine empowering every person and organisation to build whatever they need to achieve.”
Microsoft’s actions during its latest round of layoffs did more than just effect the gaming industry which we primarily cover. Nevertheless, even that relatively small section of cuts have caused massive damage following years of expensive acquisitions.
Some affected workers have claimed that the tech giant is trying to replace as many workers as possible with AI tools after also investing billions into the technology with other workers fearing even more layoffs are just around the corner.
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