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Microsoft Plans Thousands of Job Cuts Amid AI Expansion

Microsoft is preparing to lay off thousands of employees, particularly in its sales division, according to a Bloomberg News report published Wednesday. The move comes as the company accelerates investments in artificial intelligence (AI) and realigns its workforce to support the growing demands of the technology.

The layoffs are expected to be announced early next month, following the end of Microsoft’s fiscal year. While the exact number of job cuts has not been confirmed, sources suggest that the move will impact more than just sales roles. Microsoft declined to comment on the report.

This would mark the second significant round of layoffs in 2025, following cuts in May that affected around 6,000 employees.

The tech giant has committed a record $80 billion in capital expenditure this fiscal year, with most of that spending allocated to expanding data centers and AI infrastructure. These investments are designed to support Microsoft’s growing suite of AI-powered services, including its close partnership with OpenAI and integration of generative AI across its software platforms.

The shift mirrors trends across the industry. Amazon CEO Andy Jassy stated on Tuesday that generative AI and agent technologies would likely reduce corporate workforce needs over the coming years, underscoring how automation and AI are reshaping traditional business roles.

With a global workforce of 228,000 employees as of June 2024, Microsoft is balancing aggressive growth in AI with internal restructuring — a sign of how tech giants are repositioning for the next phase of innovation-driven competition.

Visual Effects Veteran Ed Ulbrich Joins AI Firm Moonvalley to Expand Hollywood Partnerships

Ed Ulbrich, a seasoned visual effects expert known for his work on blockbuster films like Titanic, The Curious Case of Benjamin Button, and Top Gun: Maverick, has joined AI research company Moonvalley as head of strategic growth and partnerships.

Ulbrich’s role involves strengthening Moonvalley’s ties within Hollywood and collaborating with its studio division, Asteria Film, to promote the adoption of Moonvalley’s generative AI technology, Marey. He draws parallels between the current AI surge and the earlier CGI revolution, which despite initial fears, ultimately created hundreds of thousands of new jobs in the industry.

Moonvalley emphasizes the ethical use of AI by training its models only on licensed content, addressing recent controversies around unauthorized use of film and TV libraries that have led to lawsuits against other AI firms like Midjourney. Ulbrich expressed that the company’s respect for creators and clean data use was a key factor in his decision to join.

With over 30 years in visual effects and credits in more than 50 films and 500 commercials, Ulbrich has also pioneered digital human performances, such as the holographic Tupac Shakur at Coachella in 2012. Before Moonvalley, he was chief content officer and production president at Metaphysic, an AI company specializing in digital actor aging effects, acquired by DNEG Group in February. He has also held leadership positions at Deluxe and Digital Domain, serving as CEO at the latter.

Amazon CEO Andy Jassy Signals Workforce Reduction as AI Automates Routine Jobs

Amazon is preparing to reduce its total corporate workforce over the next few years due to the rapid adoption of generative AI and automation, CEO Andy Jassy said in an internal note on Tuesday. The company expects that AI-driven efficiencies will reshape job roles, decreasing demand for some routine tasks while increasing demand for others.

Amazon employed more than 1.5 million full-time and part-time workers by the end of 2024, alongside temporary and contract staff. Jassy highlighted the company’s ongoing use of AI to optimize inventory management, improve forecasting, upgrade customer service chatbots, and enhance product detail pages.

“As we roll out more Generative AI and agents, it should change the way our work is done. We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs,” Jassy said.

Industry analysts note that this trend reflects a broader shift across the tech sector. Gil Luria of D.A. Davidson commented that AI’s rapid productivity gains are leading to slower hiring, particularly in software development roles.

Other major tech firms like Microsoft and Google have also emphasized AI’s role in boosting productivity while concurrently reducing headcount through layoffs.

While AI is expected to reshape the workforce rather than cause mass unemployment, many roles will evolve significantly in the coming years as automation accelerates.