- Microsoft has so far notified at least 1,000 employees out a total of 10,000 it plans to layoff.
- The layoffs include employees in Microsoft’s Web Experience Team, known internally as WebXT.
- WebXT includes the team responsible for integrating AI technology from ChatGPT into Bing.
Microsoft has so far notified at least 1,000 employees of the 10,000 it plans to layoff through March, including those who work on teams responsible for web products like Bing and Edge, and devices like the Surface Hub, according to employees and documents reviewed by Insider.
Affected units include Microsoft’s Web Experience Team, known internally as WebXT, which includes the company’s Bing search engine and Edge web browser. Notably, this is the unit responsible for integrating ChatGPT technology into Bing.
ChatGPT is the much-hyped chatbot tool from Microsoft-backed OpenAI that answer questions with surprising detail. Microsoft is reportedly investing $10 billion in OpenAI, the organization that develops ChatGPT. The Information reported earlier this year that Microsoft plans to use the same AI as ChatGPT to provide users with answers to some searches. This AI-powered version of Bing could come up before the end of March, the news outlet added.
One Microsoft employee theorized that the layoffs will help Microsoft cut higher-paid staff and hire new employees at lower compensation into investment areas like Bing. Another staffer said parts of the WebXT team could be duplicating work done through Microsoft’s OpenAI partnership. The people who spoke with Insider asked not to be identified discussing private matters.
Microsoft employees told Insider the layoffs have also affected organizations including devices (specifically employees working on the Surface Hub whiteboard), and gaming, such as publisher Bethesda Software, plus sales, recruiting, HR and consulting roles. The company could cut up to one-third of its recruiters as hiring freezes aren’t expected to let up for a year or more, Insider previously reported.
Meanwhile, Insider earlier reported that Microsoft asked some managers to identify underperformers the company can consider laying off quicker, instead of putting them on performance coaching plans.
Many employees learned of the cuts officially from CEO Satya Nadella’s email on Wednesday morning, disclosing plans to cut 10,000 before the end of March. One affected employee said they then received a meeting invite from a VP informing them of the layoff plans, later followed up by a packet explaining severance.
Employees affected by the layoffs will remain employed at the company for 60 days, but won’t report to work during this period. This is intended to allow employees on company-sponsored visas to find another job without having to leave the country. Then, employees will receive a minimum of one month of severance based on tenure, equal to one week of severance for every six months at the company.
Microsoft has notified 878 employees in Washington, where it’s headquartered, according to a mandatory filing to the state’s Employment Security Department. The company also notified the state of California about 46 layoffs, with job titles including individual contributors in applied sciences, community management, customer experience, product management, and engineers in electrical, hardware, manufacturing, mechanical, reliability, and software engineering.
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