Tech giant Microsoft has officially confirmed that it will cut up to 9,000 jobs in its latest round of layoffs during 2025. The company considers this step necessary within the framework of major investment projects in artificial intelligence (AI).
Microsoft’s statement reads:
“We continue to implement the organizational changes necessary to align our company with the constantly evolving market demands.”
These layoffs make up approximately 4 percent of Microsoft’s global workforce of 228,000 people. Although the company has not disclosed which departments will be most affected, media reports suggest that the Xbox gaming division may be hit particularly hard.
According to internal emails, Microsoft has canceled promising game projects such as the first-person shooter Perfect Dark and Everwild. The Initiative studio developing these projects will also be shut down. Additionally, well-known game developers such as Turn 10 (Forza Motorsport) and ZeniMax Online Studios (Elder Scrolls Online) were affected by the layoffs.
ZeniMax’s long-time leader Matt Firor announced he will step down in July, thanking his team and stating that he will continue to support the game as a user.
Independent Irish studio Romero Games was also forced to lay off staff after Microsoft-backed funding for one of its projects was cut. The studio’s co-founder John Romero confirmed the news on his personal social media account.
In recent years, Microsoft has made artificial intelligence one of its main focus areas. The company is investing 80 billion USD in building data centers and custom AI chips.
In 2024, Microsoft invited renowned British AI researcher Mustafa Suleyman to lead its new Microsoft AI division. A senior Microsoft executive recently told the BBC:
“Over the next 50 years, artificial intelligence will be a key factor in human labor and communication.”
Microsoft is also a major investor in OpenAI and is working to widely implement its popular product, ChatGPT. However, recent reports indicate that Microsoft’s own AI assistant — Copilot — has not become as popular among corporate clients as expected, as many employees prefer ChatGPT.
Amid Microsoft’s layoffs, competitors such as Meta (owner of Facebook and Instagram) have begun actively recruiting top AI talent. Reports indicate that Meta is offering signing bonuses of up to 100 million USD to attract top experts to its AI lab. OpenAI CEO Sam Altman has confirmed this competition.
Amazon CEO Andy Jassy recently stated that AI technologies could fully replace some human labor within the company he runs. Read 'Zamin' on Telegram!
Ctrl
Enter
Did you find a Mistake?
Highlight the phrase and press Ctrl+Enter Related News
