Microsoft is back in the headlines — but this time, not for a new product or record stock price. After laying off over 9,000 employees, the tech giant is catching heat over a message from one of its own. A senior Xbox executive’s now-deleted LinkedIn post telling laid-off workers to use AI chatbots like ChatGPT to cope has drawn sharp criticism across the internet, with many branding the suggestion as cold and out of touch.
Layoffs Rattle Microsoft’s Global Workforce
The latest round of layoffs at Microsoft, which affected roughly 9,100 people, marks one of the company’s most sweeping workforce cuts in recent years. That’s about 4% of its total global staff.
Many of the affected employees were from various corners of the company — not just tech or admin roles, but also gaming teams, including King, the mobile game developer behind Candy Crush. Around 200 people were let go from gaming alone.
Some had been with the company for years. Others had just moved for the job. The layoffs blindsided many of them.
One sentence captured the chaos: “We’re restructuring to better align with our AI-first future,” said a senior manager, according to two employees who spoke anonymously. But to those let go, the future felt anything but aligned.
An Attempt At Support That Backfired
Shortly after the layoffs hit headlines, Matt Turnbull, a leader at Xbox Game Studios, published a LinkedIn post that was supposed to be helpful. It wasn’t received that way.
His message urged those laid off to try AI chatbots like ChatGPT or Microsoft Copilot to help process their emotions and plan their next steps. He said AI could help with “mental energy,” offering prompt ideas like:
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“Act as a career coach helping me understand what to do after being laid off”
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“Help me rewrite my resume for a product manager role in gaming”
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“Reframe my imposter syndrome using coaching language”
The post ended with encouragement, calling AI tools a way to get “unstuck faster, calmer, and with more clarity.” The tone was measured — but the timing was off.
Online Reaction: Furious, Fast, and Fierce
The backlash on LinkedIn and Twitter (or “X”) was instant. One tech employee replied, “Maybe stop laying people off instead of giving them chatbot therapy.” Others called it “tone-deaf” and “corporate nonsense dressed up as compassion.”
What stung for many wasn’t just the AI suggestion — it was the broader context.
This year, Microsoft has poured over $80 billion into AI infrastructure, cementing its place as OpenAI’s biggest partner and a frontrunner in the generative AI race. Copilot is already being built into everything from Excel to Outlook.
But while investment surges in code and compute power, human lives are being upended. That disconnect — between cutting people and celebrating AI — struck a raw nerve.
And Turnbull’s post, though likely well-meaning, quickly became a symbol of that rift.
The Post Was Deleted — But The Damage Was Done
Turnbull removed the post within 24 hours. But screenshots were already circulating. People debated whether the backlash was fair — or whether everyone just needed a villain.
“I genuinely think he was trying to help,” said a former Xbox product manager, speaking anonymously. “But… it felt like therapy-speak coming from the same folks who just shut down your job.”
Some argued that the post wasn’t even the issue — the layoffs were. AI, in their view, is just a distraction from deeper problems inside Microsoft.
Still, others pointed out that using AI in job searches isn’t necessarily bad advice. In fact, job seekers across industries have already started leaning on tools like ChatGPT to prep for interviews, customize cover letters, and even vent in a private, judgment-free zone.
So why did this hit so differently?
Because of who it came from, and when.
A Bigger Layoff Picture Emerging at Microsoft
Microsoft’s job cuts this year are starting to look more systemic. It began in January when 1,900 jobs were axed from Xbox and Activision Blizzard. In May, 6,000 more people were let go, primarily from Azure and LinkedIn.
This latest round now adds another 9,100 names to the list.
Here’s a quick snapshot of Microsoft’s 2025 layoffs so far:
| Month | Division(s) Affected | Estimated Layoffs |
|---|---|---|
| January | Xbox, Activision | 1,900 |
| May | Azure, LinkedIn, Sales | 6,000 |
| July | Gaming, Global Operations | 9,100 |
That brings the year-to-date total to over 17,000 employees — many of whom, according to insiders, were caught off guard with little internal communication.
Meanwhile, Microsoft’s stock continues to climb. Shares are up 1.4% this week, trading at $498.
The AI Paradox Microsoft Can’t Escape
AI is now central to Microsoft’s identity. Its partnership with OpenAI has reshaped the company’s products, strategy, and marketing. CEO Satya Nadella has said repeatedly that AI is “as big as the PC or the web.”
But that vision comes at a cost.
The people being laid off aren’t just numbers on a spreadsheet. They’re community managers, QA testers, customer support staff, coders, designers — and they’re hurting.
Trying to bridge that gap with AI tools might make practical sense. But emotionally? It doesn’t land.
One laid-off engineer said it best: “AI is cool. But it’s not going to hug your kids when you tell them you lost your job.”
