https://www.cbsnews.com/news/microsoft-layoffs-9000-workers/
I need help understanding this article on Inc.
https://www.inc.com/jason-aten/microsofts-xbox-ceo-just-explained-why-the-company-is-laying-off-9000-people-its-not-great/91209841
Between May and now Microsoft laid off 15,000 employees, stating, mainly, that the focus now is on AI. Some skeptics I’ve been talking to are telling me that this is just an excuse, that the layoffs are simply Microsoft hiding other reasons behind “AI First”. Can this be true? Can Microsoft be, say, having revenue/financial problems and is trying to disguise those behind the “AI First” discourse?
Are they outsourcing heavily? Or is it true that AI is taking over those 15,000 jobs? The Xbox business must demand a lot and a lot of programming (as must also be the case with most of Microsoft businesses. Are those programming and software design/engineering jobs being taken over by AI?
What I can’t fathom is the possibility that there were 15,000 redundant jobs at the company and that they are now directing the money for those paychecks to pay for AI infrastructure and won’t feel the loss of thee productivity those 15,00 jobs brought to the table unless someone (or something) else is doing it.
Any Microsoft people here can explain, please?
Videos
I was laid off from Microsoft in May 2025 with my employment officially ending in July 2025. My severance clearly stated that I’m eligible for rehire.
However, it seems the FY’25 Rewards were published recently (managers finalize them by June 30), and my entry shows 0 rewards, likely because I was no longer part of the rewards cycle after being laid off. Now, a recruiter told me that because of this “0 Rewards” entry, I’m showing up as not eligible for rehire, and they had to revoke my verbal offer.
I’m trying to understand if this is a system or HR error, since:
I had 100% rewards in FY’24,
My severance letter explicitly says I’m eligible for rehire, and
My termination was due to RIF, not performance.
EDIT: I’ve already opened a ticket with HR Assist and reached out to my former manager (no response yet).Any advice on what else I can do to escalate or fix this?
UPDATE: HR Assist confirmed that I’m eligible for rehire and for FY’25 rewards. They also corrected the eligibility status on my profile (I received a screenshot). The recruiter verified that they can now see my eligibility but said the offer had already expired.
However, they still haven’t provided any details on how my status was changed or who updated it, despite my repeated requests and citing my right to full disclosure of all records related to my employment.
Does anyone has any recommendations for employment lawyers?
https://www.financialexpress.com/life/technology-tech-layoffs-microsoft-cuts-15000-jobs-in-2025-pushes-remaining-staff-to-embrace-ai-3911172/
Too much hiring during Covid
overspending on purchasing game studios
investing into AI infrastructure with nothing in return
reducing American workers, hiring offshore workers
moving from personal growth model to make profit fast model
Microsoft leadership has lost focus
9000 employees have been laid off across Microsoft
4th major mass lay offs at Xbox in 18 months
The Initiative closed, Perfect Dark cancelled
Rare hit with layoffs, Everwild cancelled, Banjo Kazooie and Sea of Thieves Director leaves Rare
50% of Turn 10 laid off
King and Zenimax hit with lay offs, new Zenmiax online IP cancelled
Multiple call of Duty Studios hit with lay offs
50% of Xbox user research team laid off, head of child and family saftey laid off
9000 employees have been laid off across Microsoft
4th major mass lay offs at Xbox in 18 months
The Initiative closed, Perfect Dark cancelled
Rare hit with layoffs, Everwild cancelled, Banjo Kazooie and Sea of Thieves Director leaves Rare
50% of Turn 10 laid off
King and Zenimax hit with lay offs, new Zenmiax online IP cancelled
Multiple call of Duty Studios hit with lay offs
50% of Xbox user research team laid off, head of child and family saftey laid off
Microsoft is once again planning to reduce thousands of jobs in July as the technology giant continues restructuring along with huge AI investments, as per a report.
According to Bloomberg, the company is expected to announce the layoffs by early next month, which would also mark the end of Microsoft's fiscal year and would start the new fiscal year.
The firm's upcoming job elimination will mainly target the sales division and also other customer-facing roles, as per the report. The tech giant's sales and marketing division employs about 45,000 of Microsoft's 228,000 total workforce as of June 2024, according to Bloomberg.
https://www.cnbc.com/2025/07/02/microsoft-laying-off-about-9000-employees-in-latest-round-of-cuts.html
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When Satya Nadella became the CEO of microsoft, it was believed he will be different. He himself told in interviews about the importance of empathy. Where has the empathy suddenly disappeared?
https://deepseeks.medium.com/how-are-microsofts-january-2025-layoffs-different-for-the-worst-aa454f061315
Why is Microsoft behaving like service based companies who do not value their employees. It has labelled many good employees as low performers and then fired. How will this affect their careers?
In 2023, Microsoft’s Chief Marketing Officer Chris Capossela made a notable statement on the company’s internal Yammer platform: “The most important lever for almost all our employees’ compensation upside is the stock price.” Below article looks into it.
Why Working at Microsoft May No Longer Be Worth It (2025)
This philosophy tied employees’ financial futures directly to Microsoft’s stock performance.
With negative one year returns, layoffs without severance is it worth to stay at microsoft.
Saw a lot of great PMs & Architects get let go this round but did not see any customer facing sales roles get impacted. Do we think those are still coming? Thoughts on if we are done for the year? Maybe another round first week of July? What’s the consensus?
UPDATE: Based on the volume of responses, here’s a quick list of what to do if you believe your severance was wrongfully denied: • File a complaint with WA State Labor & Industries • Appeal to Microsoft’s Severance Plan Administrator • You are not alone - this is happening to others with no documented performance issues (Full details and how to are in the comments below, or message me if you need help)
I was recently laid off from Microsoft after 5 years, and like others, I didn’t get severance. No formal LITE designation or performance plan, no misconduct. Just a “performance-based” termination, even though my most recent review was strong and I received a bonus last fall.
What I’ve learned since is that Microsoft is denying severance to anyone who’s ever had the LITE box checked, even if it was removed later and performance improved. It’s not about how you’re doing now. It’s whether they can point to something in your past and use that to save money.
If this happened to you (or someone you know), you can file a complaint with Washington State’s Labor & Industries department. They’re seeing more of these and are starting to notice the pattern.
Here’s how to file: 1. Go to: https://secure.lni.wa.gov/wagecomplaint/#/ 2. Select “Willful failure to pay agreed wages” and anything else that applies to your situation 3. Say you were denied severance despite recent solid performance 4. Estimate what you were owed (Microsoft gives 1 week per 6 months of service) 5. Attach docs like your termination letter, reviews, severance policy, or appeal (if you have them)
It’s free, takes 20–30 mins, and adds to the case. If enough of us speak up, they’ll have to respond.
Happy to answer questions in the comments or DMs.