Analytic Dreamz: Notorious Mass Effect - "MICROSOFT TO LAY OFF AROUND 9,000 WORKERS IN IT'S LARGEST CUTS SINCE 2023"

Episode Date: July 10, 2025

Linktree: ⁠https://linktr.ee/Analytic⁠Become A Patron Of The Notorious Mass Effect Podcast For Additional Bonus Audio And Visual Content For All Things Nme! Join Our Patreon Here: ⁠https://ow.ly/oPsc50VBOuH⁠Notorious Mass Effect with Analytic Dreamz delivers a deep dive into Microsoft’s 2025 layoffs in this segment. Analytic Dreamz breaks down the ~9,000 job cuts in July, part of over 15,000 layoffs this year, impacting gaming, sales, and software engineering. Despite $70B revenue and $25.8B profit in Q1, Microsoft is streamlining, investing $80B in AI to boost efficiency. Analytic Dreamz explores the industry trend of flattening management and AI’s role, with expert insights and severance details. Tune in for a concise, data-driven analysis of Big Tech’s evolving landscape.Privacy & Opt-Out: https://redcircle.com/privacy

Now of course over here at notorious mass effect we get into analytics and of course I call myself analytic dreams getting into a lot of the business behind the creation but unfortunately today we have to get into some abysmal analytics as I'm not cutting Microsoft any slack right and I'm not letting them off the hook by we'll let you know Now, when it comes to the tech sector specifically, the layoffs have reached over 76,000 in the first half of the year as far as January to June. Now, that being said, comparing Microsoft and what we're going to get into today as far as to the rest of the world, you have to understand that Microsoft has laid off over 15,000 employees. but also companies like meta that came out and was talking about how they've been having the lowest performance as far as in the quarter three fiscal year of 2025 disney came out and said

they've cut they've cut uh two thousand across divisions uh s d lauder i think that's how you say it they've cut off five of fifty eight hundred more specifically five thousand the 800 to 7,000 employees. So knows, I don't know why they're in here, but they cut off around 200. Well, it's not funny. None of this is funny. But as far as the numbers, you know, it's a little, you know,

it's not as big. Southwest Airlines, they've cut 1750 employees. And in general, as far as the tech sector in totality, the layoffs have been over 76,000 in general. just this year alone from January to June. So that being said, let's dive into Microsoft specifically as they made news across all outlets

as they have laid off 9,000 workers. 4% of the global workforce, just to let you know how big of a deal this is. And it's the largest cut since January 2023, when 10,000, thousand employees from Microsoft were laid off as far as 2025 specifically they've surpassed that number and then more 15,000 to be exact as far as employees now as far as global workforce as of June 2024 it's 228,000 employees I don't know if that's just for

Microsoft specifically I think that's for Microsoft so okay well yeah obviously I'm tripping So as far as the layoffs in 2025, for Microsoft specifically, May 2025, they laid off 6,000 employees, 3% of its staff. June 2025, they laid off hundreds more, including 300 in Redmond. Redmond? I don't even know. Why does it trim me up? Let me see. Get this specifically.

Redmond. I still messed it up. Washington. And July of this year, an additional 9,000 employees were cut. So you probably think it to yourself. Why in the world were they keep cutting off all of these employees? Well, they basically came out talking about Microsoft and said, quote, and this is from Microsoft, they said, quote, organizational changes to position for success in a dynamic marketplace.

Ladies and gentlemen, you just heard corporate jargon for we had to fire some folks. You know what I'm saying? At the end of the day, all of this is sad news. as far as the layoff specifically in the tech sector. Like I said, I'm gonna keep reiterating this because people are going through it. People are growing, people are going through it. And also growing through it.

Should I be a rapper? Anyways, my fault. All right. So at the end of day, Microsoft laid off all of these employees. They basically just said that there was changes to position for success in the dynamic marketplace. So if you never heard corporate jargon, well, there you go. Also, they came out and said, quote, reducing managerial layers in streamlining processes, end quote.

The CFO, Amy Hood, that definitely kept it, you know what, as far as talking about how they was cutting off people. They basically said, we're building high performing teams. She said, I could care less about how you feed your families because guess what? We just focus on high performance. Sad day in the business world. as when it comes to a lot of people talking about this and the ultimate effect it has on mental health specifically. Because a lot of people really think about money and it not being or it not equating to happiness. But there's a lot of quotes out there that let you know.

Money brings a certain amount of security that indeed lead to happiness, right? I don't know why people say money don't make you happy, right? You would rather cry in the Lamborghini than cry homeless on the street. That's just any human in my opinion, right? Because, well, not even say a Lamborghini, right? If you have a roof over your head, you would rather cry with a roof over your head than homeless. So more specifically, when they say money don't buy you happiness, I think the love of money over a lot of other things as far as family and your overall mental

wellness, I think that's when it gets tricky. But as far as money, it helps you get certain security that indeed leads to happiness. So when a lot of people losing their jobs, that happiness, whatever scale it is is being taken away from them. And now they got to start from ground zero. They are hitting Indeed, ZipRecruiter, a lot of these other job sites and letting it be known that they are looking for a job at the same time that all of these 9,000 other employees are looking for a job. And they may have the same resume. and then some because they just got laid off at the same time. So now you're competing with people for a specific job.

The people who are managers, hiring managers, they're looking at your resume scene. You just got cut off along with 9,000 other people. And they're probably thinking to themselves, I'm about to low ball you because everybody else is looking for the same job. So I'm about to see who is desperate enough to take our lowest offer. And now you get into a cycle of recession as far as, people ultimately taking less because they have nothing currently because they just got laid off.

Now, of course, that's an oversimplification, but I just wanted to let you know how pivotal these layoffs are and how damaging it is for just the ecosystem of people not having food in their pockets and a roof over their head. And with that being said, you never know how far somebody would take it to put food on the table and put and to give shelter to their family and their loved ones so with that being said that's why you should always treat people nicely and treat people treat people the way you want to be treated right not to be my soapbox but you have to when it comes to these layoffs because a lot of people are thinking a lot of things right now and hopefully they get their money through law abiding ways that's why i'm gonna leave it at

so Microsoft literally came out after these reports went out because you know they had a place some type of PR games. And they said this was not performance based. I don't know who in the world told them that was a great statement to make. But they said this is not performance based. And then the CFO, Amy Hood, comes out and says, we're building high performing teams. Ladies and gentlemen, that's why I say corporate jargon should always be looked at as just something that's just a backhand, whatever. It's never just straightforward, right?

It's always a backhand coming from somewhere, left, right, up down. It's coming from somewhere if they say something. specifically talking about performers, right? Microsoft came out, says not performance based. The performance base, the CFO came out. I was like, hold up now. Y'all are getting laid off specifically so we can build high performing teams. So anyways, it just overall showcases the broader reconstructing of companies aimed,

quote unquote, at efficiency. And of course, like I said, with the overall tech division numbers of the layoffs reaching over $76,000, as far as, you. this year alone from January to June. It also shows how big tech firms are reducing just a workforce to save money. So when it comes to meta, Amazon, Google already talked about how Google basically cut 10% of his VP and manager roles, Amazon's Andy Jassy, which you have to keep, you have to keep note of these names. A lot of people think of the alumina. is something that's like not out there you know there's a reason and i want to get canceled by this but

you know as far as certain research that leads to certain actions right there's people who actually pay attention to the names at the top of these companies and that's what i'm gonna leave you that because i'm not trying to i don't want the vans pulling up i'm just going to say well luigi did was wrong but the research that he did led him to his uh law breaking action because it's definitely law breaking he's going to jail i'm not conduct don't in it. I'm just letting you know that as far as keeping a note of these names, you have to know who's at the top of the businesses so you can follow them to see who you want to work for and who you want to avoid going forward because maybe they overtly showcase the morale, basically

letting you know that their intentions are to, like, is to scam you. They, like, they want to scam you. You know what I'm saying? So sometimes you have to keep note of these names. so um amazon's andy jassy said the a i will reduce head count long term sad day in history man when when um when people start talking like that you just got to think to yourself man you really have to use your 24 hours in a day effectively because right now we're in a spooky times if you have a job do not take that for granted because the current workforce i know i'm talking about the tech sector sector specifically but this is just the workforce in general i know people been getting laid off from other sectors of the workforce and it has nothing to do with tech

i think right now which is in very interesting times that's why you should definitely be grateful for whatever you have whether there's a roof over your head whether it's uh whatever type of exposureable income you have it's a very interesting time in society when all of these people are being laid off at the same time because we don't know what the long term ramifications are. So when it comes to that, companies are also hiring fewer workers and investing more in GPUs and data centers than in traditional labor. Let me repeat that one more time. Companies are hiring fewer workers and investing more in GPUs and data centers than in traditional labor.

which goes back to Amazon's Andy Jassy's point, AI will reduce head count long term. And now you see all of these layoffs happening. Now, one can say it's not because of a lack of high performers. It's because of businesses wanting to take the shortcut and save money on the back end by hiring these AI robots to do what humans used to do, which is a fair point. Some would say that people talking about the fiscal year in the quarter one, two, and three

performances throughout 2025 is taking away the fact that AI has evolved to a point where it could do a lot of complex tasks way quicker and more efficiently than humans can. And I think we're seeing that in the number of layoffs currently. So with that being said, it's very unfortunate. The affected employees of Microsoft specifically, they're receiving 60 days of pay leave after signing. That's more of a general because it's over 9,000. So you don't know how many of those 9,000 employees are getting at 60 days of pay leave. You would hope is all of them.

But you never know. They have until July 8th. So tomorrow, they have until July 8th. Well, if you're listening to this in the future, July 8th is when the affected employees can sign a severance agreement. So very unfortunate in today's society. I don't want to be the dead horse. I just wanted to bring it to y'all's attention that the current society and the workforce is going under a huge turmoil as far as the battle between human and AI, which is why I talked about how the music industry specifically, because I get into. music and gaming. It's just things like this that affect overall gaming to the point where Xbox

CEO Phil Spencer came out and talked about these layoffs saying that, well, addressing the cuts saying, quote, follow Microsoft's lead and in removing layers of management to increase agility and effectiveness. And that's from Phil Spencer. I'll read it again. Quote, Phil Spencer said, quote, follow Microsoft's lead and removing layers of management. to increase agility and effectiveness. Sad they will live in it right now. But anyways, as far as AI, I just talked about this July 6 of this year and broke down how AI is affecting even the music industry.

As far as tools like music LLM and isotope having a lot of, let's just say creative freedom as far as taking from actual artists. And I dive into specific examples as far as Timber. in the way that he used AI to completely rip off an actual artist that he was quote unquote cultivating to be a star so I impact that specifically so if you want to hear my coverage of AI just type in AI analytic dreams with the Z and it should pop up but as far as my coverage of this that's all I have for you is very unfortunate over 15,000 employees laid off by Microsoft specifically and an entire half of as far as the first half of the first half of the

year and a tech sector, 76,000, over 76,000 have been laid off in the first half of 2025. So with that being said, click my link to my bio. Let me know one of my social medias. What do you think about Microsoft laying off over 9,000 workers just in July? And with that being said, where is your overall reaction to the current landscape of the workforce?