Microsoft plans to lay off nearly 5% of its workforce, totaling 10,000 workers this week. The company has a total workforce of nearly 221,000 workers, with 10,000 workers being laid off, this marks Microsofts largest amount of job cuts since 2014 and 2015, totaling 25,000 jobs. However, in 2014 and 2015, Microsoft was attempting to clean up the mistake of their failed Microsoft Windows phone experiment, along with the acquisition of Nokia.
Satya Nadella, Microsoft’s chief executive, released a message to their staff, saying:
“These are the kinds of hard choices we have made throughout our 47-year history to remain a consequential company in this industry that is unforgiving to anyone who doesn’t adapt to platform shifts.”
Since there are no failed products or services rendering thousands of workers now useless to the company, the purpose for these job layoffs could be something else entirely.
Microsoft is now poised to invest another $10 billion into ChatGBT, an online artificial intelligence system. Microsoft is attempting to invest heavily into ChatGBT in an attempt to outpace Google’s search engine, in the race to integrate artificial intelligence into their search engines. While Microsoft’s search engine, Bing, has always clearly sat behind Google, the integration of ChatGBT’s software can give Bing the opportunity to take the edge over Google. Microsoft is speculated to also be attempting to integrate ChatGBT into Word, PowerPoint, and Outlook.
Along with yet another investment into ChatGBT, Microsoft is also attempting to purchase Activision to the tune of another $69 billion. Microsoft, the maker of the Xbox gaming console, will also look to be making the Xbox’s games as well as a result of the potential Activision acquisition, and this comes with the potential of making the games Activision currently has the rights to becoming Xbox exclusives, thus generating a potentially even larger revenue for Microsoft.