On June 3, Aaron Damigos received a business-update calendar invite, causing alarm as he opened his inbox. The meeting, attended by HR, his manager, and upper management, led to the abrupt termination of Damigos' role as a web support associate at Microsoft. Microsoft reportedly laid off around 1, 000 employees in early June, focusing on its mixed reality, Azure cloud, and consumer sales departments. An email from Jason Zander, executive vice president of strategic missions and technologies at Microsoft, leaked to Business Insider, attributed the layoffs to a shift towards investing in artificial intelligence (AI): "Our company's clear focus is to lead the AI wave and empower our customers in adopting this transformative technology. Along this path, we must make decisions that align with our long-term vision, strategy, and the growth of Microsoft. " Damigos, who resides in Tacoma, Washington, claims he was not explicitly informed that the push for AI directly caused the end of his job, which involved assisting customers in understanding Microsoft products. However, it is evident that Microsoft, as the biggest supporter of OpenAI, is fully committed to this technology. Damigos, who has been documenting his layoff experience and showcasing his skills on TikTok, contends, "I helped people effectively understand and utilize the products. " He believes that his team had great potential to enhance the customer experience for Microsoft, but the company decided to invest elsewhere. Microsoft did not officially verify the authenticity of Zander's emails. Craig Cincotta, a Microsoft spokesperson, stated, "Organizational and workforce adjustments are an essential and regular aspect of managing our business. We will continue prioritizing strategic growth areas for our future and in support of our customers and partners. " The long-term impact of AI on the workforce remains uncertain, with experts generally agreeing that AI is unlikely to replace most jobs in the near future. "AI will reshape the labor market, " says Nick Bunker, director of economic research at Indeed.

"However, the precise extent of this reshaping is still unclear. " Some predict that it may create more jobs, while others find themselves training AI to replace their own positions. The current layoffs demonstrate that AI hype, instead of futuristic AI colleagues, can result in the loss of thousands of jobs. Microsoft is not the only company taking such measures. Dropbox announced 500 layoffs in April 2023, with CEO Drew Houston acknowledging the influence of AI. Houston's statement explained, "Ideally, we would transition people from one team to another, which we have done wherever possible. However, our next stage of growth requires a different blend of skill sets, especially in AI and early-stage product development. " Meta's Mark Zuckerberg expressed similar sentiments earlier this year about job cuts to invest in AI, stating, "Our major goal will be to create the most popular and advanced AI products and services, " as Meta moved on from its "year of efficiency, " resulting in downsizing. Google has also allocated funds to its Anthropic AI projects, and CEO Sundar Pichai warned of ongoing reductions throughout 2024, starting in January, despite the company's strong growth. "We are responsibly investing in our company's most important priorities and the significant opportunities that lie ahead, " says Bailey Tomson, a Google spokesperson. Tomson explains that various teams at Google have undergone changes to enhance efficiency and focus on the most crucial advancements and priorities, reducing bureaucracy and layers in the process.