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Microsoft’s Ongoing Layoffs Signal Deeper Strategic Shift

  • 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.

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