Microsoft has initiated multiple rounds of layoffs since mid-May, with over 6,000 positions cut globally, including 2,000 in Washington state, signaling a deeper strategic shift.
Job security for software engineers and product managers at Microsoft has been eroded, with around 800 engineers laid off in May alone, reflecting a move towards a flatter organizational model.
The gaming division at Microsoft faces instability despite a revenue surge from the Activision Blizzard acquisition, with declining Xbox hardware sales and repeated layoffs, indicating internal scrutiny.
The ongoing internal tension at Microsoft due to layoffs being delivered impersonally, coupled with the company's transition towards artificial intelligence, suggests further layoffs in non-AI areas and a focus on AI development.