Microsoft laid off nearly 5,000 employees. It says AI isn't the reason. #Microsoft #tech #AI

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0:00Microsoft has announced plans to lay off

0:01roughly 4,800 employees. That's about

0:042.1% of its global [music] workforce,

0:06Business Insider's Ashley Stewart

0:08reported. The cuts mostly impact sales

0:10[music] and Xbox gaming teams, with Xbox

0:12accounting for 1,600 of the eliminated

0:15[music] roles. The Xbox division also

0:17plans to cut 20% of its workforce this

0:19fiscal [music] year. In a memo to

0:21employees on Monday, Microsoft HR chief

0:23Amy Coleman said that the roles are not

0:25being replaced by AI, but [music] she

0:27did say that AI is changing how work

0:29gets done. "Some daily tasks can now be

0:31automated," she said, adding that we all

0:33need to keep learning, keep building new

0:35skills, and keep adapting [music] as the

0:37work evolves. The cuts come after

0:39Microsoft launched a voluntary

0:40retirement program earlier [music] this

0:42year, offering buyouts to some

0:44employees. About 1/3 of the nearly 9,000

0:47eligible employees took it, which

0:48allowed for fewer layoffs. Still,

0:50Microsoft is cutting costs as it spends

0:53heavily on AI infrastructure, [music]

0:54while facing growing investor concerns

0:56that AI could upend traditional

0:58software. Those worries helped send

1:00Microsoft stock tumbling 19% in June,

1:03its worst monthly performance since the

1:05dot-com era. To read Ashley Stewart's

1:07reporting on Microsoft and its shift

1:09towards AI, head to Business Insider.

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