A Microsoft employee faced backlash after posting an AI-generated image to promote job openings on the Xbox graphics team. The image, which shows a woman typing at a computer with the monitor displaying incorrectly on the back, was shared on LinkedIn shortly after significant layoffs in the gaming division. The post, while not an official Microsoft announcement, prompted over 100 critical comments, pointing out the poor quality of the image and the insensitive timing given the recent layoffs affecting around 9,000 employees. This incident highlights the ongoing challenges and shifts within Microsoft’s gaming sector, particularly as the company pivots towards AI technology despite recent cuts in staff and major projects.

What are the recent layoffs at Microsoft related to gaming?

Microsoft recently laid off approximately 9,100 employees within its gaming division, a move affecting several major Xbox studios and resulting in the cancellation of projects like Everwild and the Perfect Dark reboot. These layoffs mark the fourth round of staff reductions in the gaming sector within the last 18 months.

The gaming landscape has been shifting rapidly, with Microsoft investing heavily in AI technology and development. However, this transition has come at a cost, as evident from the cuts made across various teams. With popular franchises like Xbox facing scrutiny amidst these changes, the focus will be on how Microsoft navigates its future in game development while maintaining a skilled workforce.