Microsoft has confirmed it’s laying off 9,000 people, bringing the total number of cuts to over 15,000 company-wide. The decision comes as part of a broader shift towards investing in artificial intelligence (AI). In an email to employees, Xbox CEO Phil Spencer explained that the layoffs are necessary to “position Gaming for enduring success” and focus on strategic growth areas.
However, critics argue that the company’s language on the issue is misleading. Spencer’s statement says that the Xbox business has “never looked stronger,” yet it’s simultaneously laying off thousands of people. The truth appears to be that Microsoft is betting big on AI, which comes with significant costs. The company is pivoting towards an AI-first future, and the layoffs are part of this shift.
Experts point out that the language used by Spencer tries to have it both ways – being encouraging while being opaque. This approach doesn’t make sense when explaining large-scale layoffs. It’s unclear what strategic growth areas the company wants to focus on, but experts speculate that they likely relate to AI and cloud services.
While companies evolve as technologies change, leaders should communicate their decisions honestly with employees. Microsoft could have simply stated that it’s making strategic shifts towards AI, which would be more transparent and respectful. Instead, the company has framed layoffs in a way that tries to make them seem like a success story, ignoring the fact that they’re an inevitable consequence of the next big thing.
Ultimately, this shift highlights the vulnerability of employees when companies pivot towards new priorities. Layoffs are not a success story; they represent the expendability of certain roles when the company prioritizes something else.
Source: https://www.inc.com/jason-aten/microsofts-xbox-ceo-just-explained-why-the-company-is-laying-off-9000-people-its-not-great/91209841