As Microsoft Corporation MSFT reels from sweeping layoffs affecting 9,100 employees, an Xbox executive's suggestion to use AI chatbots for emotional support has ignited fierce backlash online.
What Happened: Last week, Matt Turnbull, a leader at Xbox Game Studios, posted on LinkedIn that laid-off workers could turn to tools like ChatGPT and Copilot to cope with job loss and navigate their next steps.
"At a time when mental energy is scarce, these tools can help get you unstuck faster, calmer and with more clarity," Turnbull wrote.
He also shared prompt suggestions, such as asking AI to act as a career coach, improve resumes, or help reframe imposter syndrome.
His post drew immediate criticism and was later deleted. The backlash was swift across social media platforms, with people calling the advice tone-deaf, particularly in light of Microsoft's ongoing $80 billion investment in AI infrastructure.
See Also: Jensen Huang Gave $12.6 Million To Charity, Then Nvidia’s Stock Made It Billions
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Why It's Important: The layoffs impact under 4% of Microsoft's global workforce, spanning various teams and regions. Within its gaming division — which includes Candy Crush owner King — Microsoft cut 200 jobs, continuing its workforce downsizing after shedding 6,000 roles in May.
In June, Rivian Automotive, Inc. RIVN cut about 140 jobs (1% of its workforce), mainly in manufacturing.
Bumble, Inc. BMBL announced it would lay off around 240 employees (30% of its staff) to boost efficiency and fund new product development.
Alphabet Inc.'s GOOG GOOGL Google reduced its smart TV division by 25% (about 75 jobs) to shift resources toward AI projects.
Intel Corp INTC plans to cut 15–20% of its Foundry division and exit its automotive business to become more efficient.
Benzinga's Edge Stock Rankings show that MSFT maintains a strong upward trend over the short, medium and long term. Its momentum score remains robust, though its value ranking is comparatively weaker. You can find more detailed performance data here.
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