Microsoft has announced yet another round of layoffs following its acquisition of Activision Blizzard amid its current heavy investments in AI. A cush job offering at Microsoft could be a risky venture for anyone these days, as the company continues job cuts and more could easily be on the horizon. The console manufacturer and game/OS publisher reportedly has 228,000 staff worldwide, but according to multiple reports, has laid off nearly 27,000 since 2023. While the current amount is said to be 9,000, it follows another 6,000 in 2025 alone and then 1,900 in 2024, with 10,000 in 2023. Washington state seems to be a focal point of recent layoffs, as the Seattle Times has reported that roughly a third of the job cuts have happened there.
It’s been reported that Microsoft is currently investing big in creating its own AI infrastructure with having already spent $55 billion in FY24 and planning to increase that figure to over $80 billion for FY25. Meanwhile, it has already thrown out $69 billion for its purchase of Activision Blizzard in 2022. It’s reduced software engineering staff by nearly half, with 800 cut out of 1,985 positions. Microsoft’s gaming division has been particularly hit hard as well, with many studio closures and game development cancellations over the last two years. Xbox CEO Phil Spencer sent the following to staff regarding the latest round of staff reductions and reorganization.
Per Phil Spencer (via IGN):
“Today we are sharing decisions that will impact colleagues across our organization. To position Gaming for enduring success and allow us to focus on strategic growth areas, we will end or decrease work in certain areas of the business and follow Microsoft’s lead in removing layers of management to increase agility and effectiveness. Out of respect for those impacted today, the specifics of today’s notifications and any organizational shifts will be shared by your team leaders in the coming days.
I recognize that these changes come at a time when we have more players, games, and gaming hours than ever before. Our platform, hardware, and game roadmap have never looked stronger. The success we’re seeing currently is based on tough decisions we’ve made previously. We must make choices now for continued success in future years and a key part of that strategy is the discipline to prioritize the strongest opportunities. We will protect what is thriving and concentrate effort on areas with the greatest potential, while delivering on the expectations the company has for our business. This focused approach means we can deliver exceptional games and experiences for players for generations to come.
Prioritizing our opportunities is essential, but that does not lessen the significance of this moment. Simply put, we would not be where we are today without the time, energy, and creativity of those whose roles are impacted. These decisions are not a reflection of the talent, creativity, and dedication of the people involved. Our momentum is not accidental — it is the result of years of dedicated effort from our teams.
HR is working directly with impacted employees to provide severance plan benefits (aligned with local laws), including pay, healthcare coverage, and job placement resources to support their transition. Employees whose roles were eliminated are encouraged to explore open positions across Microsoft Gaming, where their applications will be given priority review.
Thank you to everyone who has shaped our culture, our products, and our community. We will move forward with deep appreciation and respect for all who have contributed to this journey.
Phil”
While the Xbox CEO acknowledges the recent successes of its gaming division, it’s likely to be of little consolation for the many who have, or will become, jobless. From new titles to cross-platform releases on PlayStation, the Xbox gaming division has been riding high since before the start of 2025, but rumors about the CEO’s retirement began circulating after yesterday’s layoff announcement, stating that he would step down following the launch of the next Xbox console. Xbox has been prominent with its own recent announcements regarding its partnership renewal with AMD for its consoles, but also working with hardware manufacturers to bring its Xbox OS to the gaming handheld market as well. Microsoft was quick to state, per The Verge, that there are no plans for Phil to retire anytime soon, but that vague claim doesn’t really deny the rumors either, since the next Xbox isn’t expected until at least 2027.
Discussion (15 replies)
Join Discussion →If you didn't see ai costing entry level tech jobs... you weren't thinking.
Want some fries with that shake? Oh wait robots are coming for those too.
It's like we're going back to the days of people who know the hardware and communications infrastructure are going back into the limelight where we started. I feel for programmers... but they were by and large never really in the hard core computer engineering. Just like guys who define protocols and communications, and cpu's would say about me. ;)
Yes this is inevitable unfortunately.
Not that I disagree with the statement, because I personally believe people abdicate critical thought when they use AI ... but let's explore the underlying premise.
Does this presuppose that entry level jobs are not necessary?
If entry level jobs are eliminated, where will the next generation of skilled professionals come from? Every organization has some measure of internal promotion ... where a senior person leaves or retires and underlings get promoted in order to retain and promulgate institutional knowledge. Who will fill the void at the bottom of the chain? AI, you say. How long will it be until AI fills the CEO's position?
Will the standard level of skill required for next-level-above-entry devolve to allow entry to a profession? Previously entry level meant little or no experience, but able to be trained. The new entry level will require experience (at least in using AI to achieve outcomes). Where will that experience come from? Where will the training be provided?
If an organization has difficulty with recruitment and filling entry level positions, does it seem likely that a pool of professionals with the exact skills that organization needs are willing and able to be employed at a moment's notice instead? Are experienced and skilled professionals willing to start at the bottom of the chain?
If an organization hires only candidates who are trained experts for the position, how long will that person stay when they realize there is no opportunity to learn to perform it better or to expand their skills to grow in the position?
Replacing entry level jobs with AI seems to be willfully short sighted and tailored to meet the next quarterly goal.
Some really good points there.
The irony is somewhat sickening.
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Same way as when consultants are brought in to learn your job then suddenly Abdul (no offense if that is your name) in IDGAFStan, has your job and you're on the street because the company can pay them 1/3rd of your income and they can support a family of howevertheeffmany on that with ease where they live.
Of course this only works until prices creep up in their region because more money is present they they need more money and the process repeats...
Now it's just AI, until power/compute costs catch up with cost of living. IF that ever happens... Currently it's a race to the bottom dollar in service of share holders whom are only interested in short term gains.
Why can't we use AI for something useful - like programming traffic lights so I don't have to sit at a red light, with a bunch of other people also sitting at the red light, and absolutely no one is moving at all? Seems like some of that "climate change" money and revolutionary "AI compute" could be useful in figuring out better ways to time traffic lights, or dynamically drive them rather than just a timer, with maybe a sensor if you are lucky.
You don't need fully aware Skynet self driving for that.
Sure, you can go do round-abouts everywhere. We got all kinds of room for that out west here. Good luck tearing out and re-paving every intersection.
Or.. just reprogram the existing light interface. Maybe add some interface device
Man that would be sweet, AI driven traffic lights... imagine the metadata they could collect on that.
Yea the drive is faster... but here's your ticket for being on the phone while at a real red light. Here's your ticket for an out of date sticker or bad blinker. Here's your medical bill increase because we detected you drink an abundance of energy drinks while sitting at traffic lights. Oh and we detected that you use an e-sig while driving. Oh and you can't get medical insurance. Oh and here is your increase in insurance costs because of bad driving habits the AI was able to detect.... and on... and on.... and on...
The death by metadata.
Because if you think even for a brief moment that that won't happen... the INSTANT we have constantly monitored by AI cameras at every intersection (or even a subset of them) you are deluding yourself. EVEN IF they put in policy that it isn't allowed to happen... you KNOW they will be teaching AI to gather all of that juicy metadata, so they can simply change the policy on an amendment to a policy to allow tracking of sexual predators that NOBODY would want to vote against... because that's how shady shit is done.
It already exists. Search "Intelligent Traffic Systems (ITS)" or "Intelligent Traffic Management Systems" and you will be rewarded.
Now the question is, if or when it will be implemented at [insert location]? See your local traffic engineer or municipal planning authority. Chances are they've already established policy on when these systems are to be implemented and the conditions under which they're warranted for implementation (whether as retrofits or as part of a broader community traffic plan).
Work already put them in all the work trucks. It yells if you raise your hand up - thinking you are yawning and need to pull over. It complains if you have a drink from a can, thinking it's gotta be beer. It complains if you change lanes too aggressively.
Already starting to see some of the blow black from license plate readers tracking cars, and the loose legal requirements on obtaining that metadata. One side saying there's a right to privacy and data like this should only be obtainable with a warrant, and the other side saying your license plate, and even looking inside your car windows, are open and vidible to the public and public data.
It will be interesting to follow how that plays out legally, because I think the distopia you describe is going to be heavily influenced by that.
You can count on whatever legal protections that are enforced today will be de toothed in a short period of time and it will be worse.
Get your tinted windows, and ir flash tech to disable cameras pointed at your car.
Sure buddy, sure.
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