
After 9,000 layoffs at Microsoft, Xbox exec tells fired employees to go and talk to AI to reduce job loss pain
In the same post, Turnbull listed a variety of AI prompts he found helpful – from generating resume bullet points to writing outreach messages and even reframing self-doubt after a layoff. For example, he suggested asking a chatbot to act as a career coach or help rework LinkedIn bios to highlight leadership and project experience.His advice was shared with sincerity, but not everyone was impressed. The idea of using AI for emotional clarity, especially as AI itself is seen as contributing to job losses, struck a nerve with some. The post was eventually deleted, though it was first captured by Aftermath.Microsoft, meanwhile, continues to defend the layoffs as part of broader organisational restructuring. In a company email, executives said the changes are necessary to 'position the company and its teams for success in a dynamic marketplace.' While they confirmed that the gaming division was affected, the company claimed most of that unit remained intact.Phil Spencer, CEO of Microsoft Gaming, addressed the issue in a memo to staff, saying the goal was to streamline teams and refocus on strategic areas. 'To position Gaming for enduring success... 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,' Spencer wrote.The recent 9,000 job cuts are part of a larger trend. Microsoft had already eliminated more than 6,000 roles in May, followed by smaller cuts in June. In 2023, the company laid off around 10,000 staff. And this is not unique to Microsoft – other tech giants are undergoing similar transformations. Meta cut around 5 per cent of its workforce as part of performance reviews earlier this year, while Google's parent company Alphabet has laid off hundreds in its transition to more AI-focused work. Amazon, too, has slashed thousands of roles across various departments, including its books and devices divisions.- Ends

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Mint
2 hours ago
- Mint
Three years on, AI is prompting IT services companies to cut workforce.
Tata Consultancy Services (TCS) will lay off approximately 12,000 employees this fiscal year, as India's biggest private employer adjusts to slowing growth and rising artificial intelligence (AI). The company attributed the decision, which will primarily impact senior and middle-level employees, partly to AI. "TCS is on a journey to become a future-ready organization," a company statement said on Sunday. "This includes strategic initiatives on multiple fronts including investing in new-tech areas, entering new markets, deploying AI at scale for our clients and ourselves, deepening our partnerships, creating next-gen infrastructure and realigning our workforce model. 'As part of this journey, we will also be releasing associates from the organization whose deployment may not be feasible. This will impact about 2% of our global workforce, primarily in the middle and the senior grades, over the course of the year." This would imply that TCS, which ended the June quarter with 613,069 employees, will let go of 12,200 employees. Mint has learnt that TCS has already asked 100 employees in Bengaluru to go over the last fortnight. The TCS job cut comes 30 months after the debut of ChatGPT cast a shadow over the business model of India's IT giants, who employ armies of coders. Just two weeks ago, India's third-largest IT services HCL Technologies Ltd mentioned potential layoffs as automation replaces work done by graduates. 'The impact of AI is eating into the people-heavy services model and forcing the large service providers such as TCS to rebalance their workforces to maintain their profit margins and stay price competitive in a cut-throat market where clients are demanding 20-30% price reductions on deals," said Phil Fersht, chief executive of HFS Research. 'This trend will last for about a year as the leading providers focus on training junior talent to work with AI solutions, and are forced to move on people who will struggle to align with the new AI model we call services-as-software," said Fersht. Meanwhile, fourth-largest Wipro Ltd is planning English competency tests for senior executives. Employees faring poorly in the first-of-its-kind exercise may be put on performance improvement plans, according to three executives privy to the development, stoking fears of potential layoffs. 'Please note that it is mandatory to take the communication assessment and clear it," read an internal email shared with Wipro employees on 19 July and accessed by Mint. 'Not taking the assessment will invite disciplinary action. Not clearing it in one attempt will result in a Performance Improvement Plan (PIP)," read Wipro's email. A PIP is often seen as a prelude to termination. An email sent to Wipro seeking a comment went unanswered. At HCL Technologies, it is graduates who are in the crosshairs, unlike TCS and Wipro, where the heat is on middle and senior employees. "Of course, we have had a good amount of people released due to the productivity improvements. Now, not all of them are readily redeployable, because the requirements for some of the entry-level or lower-end skills are being addressed through automation and other elements," CEO C. Vijayakumar told analysts on 14 July. "The training and the redeployment time is longer. Some of them will be redeployed, but for others, it may not be possible. So, some amount of change in the industry is also kind of causing this," said Vijayakumar. HCL did not specify what percentage of workforce would be impacted. An email seeking comment went unanswered. The news of layoffs at TCS, first reported by Moneycontrol on Sunday, has also sparked debate about whether it is due to disruption from AI or the company's underperformance. "This round of layoffs is completely on account of slow growth," a TCS executive said on the condition of anonymity. 'Automation and GenAI cannot be displacing executives with 10 or more years of experience." TCS's under-performance under K. Krithivasan, who took over as CEO on 1 June, 2023, has caused anxiety among senior executives and a few analysts. In the June quarter, the company reported the slowest revenue growth among the top five, reporting a 0.59% sequential revenue decline to $7.42 billion. It's not a one-off either. Between 1 July 2023, and 30 June 2025, TCS achieved a 0.34% compounded quarterly dollar revenue growth, with its revenue increasing from $7.22 billion in the June quarter of 2023 to $7.42 billion in the June quarter of 2025. Infosys, in comparison, achieved a growth of 0.85% during this period, while HCL Technologies achieved 1.29%. For this reason, analysts at Kotak Institutional Equities believe TCS has lost its sheen compared to its peers in recent years. "TCS's relative resilience (ability to bounce back from a shock) versus peers has narrowed compared with the past. Relative competitive advantage has declined," its analysts Kawaljeet Saluja, Sathishkumar S., and Vamshi Krishna wrote on 11 April. 'TCS did not lead growth in the past two years, even when demand was driven by cost take-outs. Performance in developed markets in FY2025 has been poor with a decline in North America," the Kotak note added. Keith Bachman, analyst at BMO Capital Advisors, said AI-related productivity benefits could be meaningful in the 20-30% range over time. "Hence, all services providers will need to 1) gain share and/ or 2) enable and capture new addressable market opportunities to sustain growth. We remain concerned on impact to long-term growth from AI efficiency," wrote Bachman, who was among the first to cite GenAI's threat to IT services firms, on 23 July. Nearly a year after the launch of ChatGPT, Bachman had cautioned, 'First, all IT service providers have adopted new tools or end solutions that caused pressure on billable hours, to include Robotic Process Automation (RPA) and code repositories, amongst other areas. Further, each new tool or solution generates higher efficiency than the previous tools or solutions."


Deccan Herald
6 hours ago
- Deccan Herald
Meta appoints ChatGPT co-creator as Superintelligence Lab chief
Meta Platforms has appointed Shengjia Zhao, co-creator of ChatGPT, as chief scientist of its Superintelligence Lab, CEO Mark Zuckerberg said on Friday, as the company accelerates its push into advanced AI. "In this role, Shengjia will set the research agenda and scientific direction for our new lab working directly with me and Alex," Zuckerberg wrote in a Threads post, referring to Meta's Chief AI Officer Alexandr Wang, who Zuckerberg hired from startup Scale AI when Meta took a big stake in it. Zhao, a former research scientist at OpenAI, co-created ChatGPT, GPT-4 and several of OpenAI's mini models, including 4.1 and o3. He is among several researchers who have moved from OpenAI to Meta in recent weeks, part of a broader talent arms race as Zuckerberg aggressively hires from rivals to close the gap in advanced AI. Meta has been offering some of Silicon Valley's most lucrative pay packages and striking startup deals to attract top researchers, a strategy that follows the underwhelming performance of its Llama 4 model. Meta launched the Superintelligence Lab recently to consolidate work on its Llama models and long-term artificial general intelligence ambitions. Zhao is a co-founder of the lab, according to the Threads post, which operates separately from FAIR, Meta's established AI research division led by deep learning pioneer Yann LeCun. Zuckerberg has said Meta aims to build 'full general intelligence' and release its work as open source — a strategy that has drawn both praise and concern within the AI community.


India.com
7 hours ago
- India.com
Bad news for employees of Ratan Tata's TCS, Satya Nadella's Microsoft, Intel as they plan to sack 50,000 employees due to...
Narayan Murthy and Late Ratan Tata- File image IT sector layoff: In a significant bad news for the global tech and IT sector and its millions of employees , three industry giants, Intel, Microsoft, and Tata Consultancy Services (TCS) have collectively announced over 50,000 job cuts in just one week. Readers should note that the massive layoffs wave mark one of the most significant employment disruptions in recent memory. Here are all the details you need to know about the massive layoff wave in the IT sector. Which IT jobs are under risk? Driven by the rapid adoption of artificial intelligence and shifting business priorities amid a broader push toward cost optimization, the major IT companies are taking the decision to reduce their workforce. The world already knows that Microsoft is planning to cut around 9,100 jobs globally, primarily targeting its Xbox, software, and cloud divisions as the company pivots more aggressively toward AI and flattens management structures. Which IT companies are firing on mass scale? Another major company, Intel, which is facing profitability pressures, is slashing over 5,000 roles across multiple US states as part of its strategy to become leaner and more agile. In another update, Ratan TCS, which is India's largest IT firm is trimming about 2% of its workforce, which may possibly impact more than 12,000 employees, especially at the mid- and senior levels, as automation. Why are IT companies doing mass-layoff? Experts say that these large-scale layoffs highlight a deeper structural shift across the tech industry, where AI is not just a tool but a trigger for disruption. As the IT companies are prioritizing more and more innovation and efficiency, traditional roles which were done by humans are rapidly being redefined or replacement.