Microsoft's Xbox exec suggests AI to aid staff after layoffs

Matt Turnbull, an executive at Xbox Game Studios, recently suggested that AI tools could assist those affected by Microsoft’s latest layoffs.

The company announced cuts that will impact up to 9,100 employees, with gaming studios hit hard.

In a now-deleted LinkedIn post, Turnbull recommended using AI chatbots like ChatGPT and Copilot for resume building, career planning, and emotional support.

He acknowledged that these tools can’t replace personal experiences but may help reduce stress and provide clarity during tough times.

The reason for Turnbull’s post deletion is unclear, but reposts on platforms like Bluesky suggest it received backlash.

🔗 Source: The Verge

🧠 Food for thought

1️⃣ Microsoft’s pattern of layoffs amid technological pivots creates mixed messaging

Microsoft’s suggestion to use AI for emotional support comes during its eighth round of layoffs in recent years, showing a recurring pattern of workforce reductions during strategic shifts.

The company cut 18,000 jobs (14% of its workforce) in 2014 after acquiring Nokia, demonstrating a history of significant restructuring following major acquisitions or strategic changes 1.

This latest round affecting 9,100 employees coincides with Microsoft’s massive $80 billion investment in AI infrastructure, creating an uncomfortable juxtaposition between AI advancement and job security 2.

The Xbox executive’s recommendation creates particularly jarring messaging in the gaming division, where creative workers already view AI as a potential threat to their livelihoods.

This highlights a recurring challenge in tech leadership: emphasizing technological solutions (like AI chatbots) for human problems partly created by the same technological priorities.

2️⃣ Gaming industry faces recurring layoff cycles despite record profits

The Xbox layoffs aren’t isolated but part of a troubling industry-wide pattern where gaming companies frequently cut jobs despite financial success.

Activision Blizzard notably laid off 800 employees (8% of its workforce) immediately after announcing record earnings, with those cuts primarily affecting non-development roles like esports, marketing, and PR 3.