MICROSOFT
Microsoft cuts 9,000 jobs as focus shifts to AI
Microsoft is letting go of up to 9,000 employees, around 4% of its global workforce, in the latest round of job cuts this year.
The company hasn’t named specific departments, but reports suggest its Xbox gaming division is among those affected.
Games like Perfect Dark and Everwild are reportedly being cancelled, and the studio “The Initiative” will shut down.
This comes as Microsoft ramps up investment in AI, spending $80bn on new data centres to support its long-term goals.
Xbox’s poor performance is unrelated to AI, with Game Pass revenue being stagnant and Xbox Series consoles selling even less than last generation’s notorious Xbox One.
Three things to know:
Up to 9,000 jobs are being cut, including roles across gaming studios and development teams.
Microsoft is investing $80bn in AI infrastructure and brought in AI expert Mustafa Suleyman last year.
Xbox’s failures are unrelated to AI, with consistent underperformance for years now.
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The company says these changes are needed to stay competitive as the tech world evolves.
Other big players are making similar moves.
Meta and Amazon are both restructuring and spending heavily on AI.
Meta is even offering signing bonuses over $100m to attract top talent.
Microsoft, meanwhile, is trying to get more businesses on board with its AI assistant, Copilot, but many workers still prefer using ChatGPT.
If 2023 was about proving AI works, 2025 is about proving it pays.