Most likely because some person/s bonuses are tied to cost cutting or "productivity" targets that can be achieved through the lay-offs. Answer from aidos_86 on reddit.com
🌐
Axios
axios.com › 2022 › 10 › 18 › microsoft-layoffs-latest-tech-firm-cuts
Microsoft layoffs October 2022: The tech giant cuts nearly 1,000 jobs
October 18, 2022 - Oct 17, 2022 - Technology · Ina ... Add Axios on Google · Illustration: Natalie Peeples/Axios · Microsoft announced layoffs across multiple divisions on Monday, Axios has confirmed....
🌐
Reddit
reddit.com › r/artificialinteligence › what is the real explanation behind 15,000 layoffs at microsoft?
r/ArtificialInteligence on Reddit: What is the real explanation behind 15,000 layoffs at Microsoft?
July 6, 2025 -

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?

Discussions

What is the real explanation behind 15,000 layoffs at Microsoft?
Welcome to the r/ArtificialIntelligence gateway Question Discussion Guidelines Please use the following guidelines in current and future posts: Post must be greater than 100 characters - the more detail, the better. Your question might already have been answered. Use the search feature if no one is engaging in your post. AI is going to take our jobs - its been asked a lot! Discussion regarding positives and negatives about AI are allowed and encouraged. Just be respectful. Please provide links to back up your arguments. No stupid questions, unless its about AI being the beast who brings the end-times. It's not. Thanks - please let mods know if you have any questions / comments / etc I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns. More on reddit.com
🌐 r/ArtificialInteligence
318
435
July 6, 2025
The primary causes of Microsoft layoffs
IMO the key reason is culture change being driven at the top. Satya has been hiring a bunch of external talent who have brought in their culture. Jay Parikh from Meta, the COO from Walmart, Charlie Bell from Amazon, Mustafa, Kevin Scott and the LinkedIn folks. It's just Scott and Rajesh in the SLT that are MSFT long-timers, no other internal promos. So Satya is counseled by people with different styles, often a very retail-like culture and that's leading to a bunch of good cultural attributes falling by the wayside when push comes to shove More on reddit.com
🌐 r/microsoft
167
553
July 10, 2025
It seems even Microsoft is laying people off. Are we at post-pandemic layoffs round 2?
Microsoft is always laying people off. It's many small layoffs but they also have many hiring bursts More on reddit.com
🌐 r/cscareerquestions
123
815
September 18, 2024
Microsoft has started layoffs today including Xbox positions
The next once in a lifetime recession is coming and it's going to be a bad one. At least I can pretend everything is fine by living in a virtual world. More on reddit.com
🌐 r/XboxSeriesX
297
648
April 27, 2022
Most likely because some person/s bonuses are tied to cost cutting or "productivity" targets that can be achieved through the lay-offs. Answer from aidos_86 on reddit.com
🌐
Udonis
blog.udonis.co › mobile-marketing › mobile-games › microsoft-layoffs
Microsoft Layoffs: 20,000+ Jobs Lost in 4 Years
July 17, 2025 - In this article, we break down ... is headed next. From 2022 through 2025, Microsoft eliminated an estimated 20,000 to 22,000 jobs across the company....
🌐
Wikipedia
en.wikipedia.org › wiki › 2022–2025_video_game_industry_layoffs
2022–2025 video game industry layoffs
2 days ago - An estimated 45,000 jobs were lost from 2022 to July 2025. These layoffs had reverberating effects on both established and emerging games companies, impacting employees, projects, and the overall landscape of the games industry. Major job cuts took place at Embracer Group, Unity Technologies, ...
Find elsewhere
🌐
The Pragmatic Engineer
newsletter.pragmaticengineer.com › p › the-scoop-36
The Scoop #36: Microsoft’s layoffs and its impact on the industry
January 19, 2023 - Microsoft’s layoffs. The tech giant announced eliminating 10,000 positions on Wednesday, which is about 5% of staff. The company made a $72B profit in 2022 - which is more than the revenue it had in 2011. So why does Microsoft need to do layoffs?
🌐
Blind
teamblind.com › misc. › microsoft layoffs are just the beginning
Microsoft layoffs are just the beginning | Misc. - Blind
May 15, 2025 - This is routine imo. They are following companies like Goldman and Morgan Stanley now. It’s sad to say but tech is no longer what it used to be. It’s been clear since 2022
🌐
CNBC
cnbc.com › 2022 › 11 › 09 › tech-layoffs-2022.html
Here's a rundown of tech companies that have announced layoffs in 2022
November 10, 2022 - In a statement to employees the ... stock is down 58% this year. In October, Microsoft confirmed that it let go of less than 1% of employees....
🌐
Layoffs.fyi
layoffs.fyi › home
Layoffs.fyi - Tech Layoff Tracker and DOGE Layoff Tracker
October 15, 2025 - [LIVE] Tracking all tech startup layoffs — and lists of employees laid off — since COVID-19 was declared a pandemic. This page is constantly being updated.
🌐
The Olympian
theolympian.com › news › state › washington › article310407150.html
Microsoft announced 9,000 layoffs. What does that mean for WA state?
July 15, 2025 - Redmond-based Microsoft announced earlier this month that it’s laying off about 9,000 employees. The news comes weeks after the tech giant said it’d be letting some 6,000 workers go.
🌐
AOL
aol.com › finance › ai-layoffs-just-starting-133246269.html
AI Layoffs Are Just Starting [Video]
1 month ago - Doug and Lee discussed the surge in announced layoffs, collapsing consumer confidence and the growing role of AI in long term job displacement across white collar fields.
🌐
Crunchbase News
news.crunchbase.com › home › the crunchbase tech layoffs tracker
Tech Layoffs: US Companies With Job Cuts In 2024 And 2025
4 days ago - Tech layoffs noticeably increased at the start of 2022, ramped up in 2023, waned somewhat in 2024 and have continued in 2025.
🌐
ChannelE2E
channele2e.com › microsoft layoffs 2022: fewer than 1,000 staff cuts at cloud services, software giant? -
Microsoft Layoffs 2022: Fewer Than 1,000 Staff Cuts at Cloud Services, Software Giant? - | ChannelE2E
September 11, 2023 - It's unclear whether the layoffs touched the company's partner organization and/or various security teams. Microsoft in July 2022 slowed its hiring in the Azure and security business units, though cloud and cybersecurity certainly remain top ...
🌐
TheLayoff
thelayoff.com › microsoft
Microsoft Corp. Layoffs - TheLayoff.com
November 10, 2025 - https://technode.com/2025/10/11/microsoft-reportedly-lays-off-shanghai-azure-staff-amid-ongoing-global-restructuring/ Reports: Microsoft Shanghai Layoffs Offer N+4 Severance, Relocation to Australia...
🌐
365 Data Science
365datascience.com › blog › trending topics › who was affected by the 2022–2023 tech layoffs? a comprehensive study by 365 data science
Who Was Affected by the 2022–2023 Tech Layoffs? – 365 Data Science
June 28, 2023 - The layoffs may be partially a consequence of the companies’ plans to invest in AI and automation. Microsoft and Google have already announced their plans to invest in AI-powered solutions like ChatGPT.
🌐
IT Pro
itpro.com › home › business › business strategy
Microsoft layoffs set to hit 9,000 staff in biggest round of cuts since 2023 | IT Pro
July 2, 2025 - The latest round of Microsoft layoffs is expected to impact around 9,000 staff globally.
🌐
OPB
opb.org › article › 2025 › 06 › 18 › microsoft-reportedly-planning-more-mass-layoffs
Microsoft reportedly planning more mass layoffs - OPB
June 19, 2025 - Microsoft has undergone several rounds of layoffs since 2022, shedding workers as it develops and adopts artificial intelligence tools that can automate some office work.
🌐
Daily Herald
heraldextra.com › top-headlines › 2025 › nov › 21 › layoffs-are-piling-up-raising-worker-anxiety-here-are-some-companies-that-have-cut-jobs-recently
Layoffs are piling up, raising worker anxiety. Here are some companies that have cut jobs recently | News, Sports, Jobs - Daily Herald
November 21, 2025 - That’s down from 99,500 core employees reported the end of last year. The company previously announced a 15% workforce reduction. ... In May, Microsoft began laying off about 6,000 workers across its workforce.
🌐
WPR
wpr.org › home › wisconsin video game developer hit with layoffs amid larger microsoft cuts
Wisconsin video game developer hit with layoffs amid larger Microsoft cuts - WPR
July 17, 2025 - “The introduction of (artificial ... of the business.” · The gaming industry at large has had more than 22,000 jobs eliminated from 2022 through March 2024, according to estimates in the journal Games: Research and ...
🌐
TIME
time.com › tech › economy
AI Isn't to Blame for Microsoft, Tech Layoffs | TIME
January 19, 2023 - The impact on the tech world has been particularly intense: More than 150,000 tech workers were laid off in 2022, according to the tracker Layoffs.fyi. Microsoft was among those companies.