9,000 more humans sacrificed to appease the Line

You may have missed the news that Microsoft laid off roughly 9,000 people today. For the absolute scale of humans affected, I can see why you’d miss it in the mess of Microsoft laying off 6,000 people, or Microsoft laying off 305 people, or Microsoft laying off 650 people, or Microsoft laying off 1,900 people, or Microsoft laying off 1,000 people. Since January 2024, Microsoft has laid off at least 18,855 human beings. People with bills, with families, and with that so annoying biological need to eat.

To consistently lay off so many people, to hang your whole ass out in the tech industry, showing how inadequate you are at maintaining a workforce and managing your staffing must indicate that Microsoft is on the rocks? Doomed even?

And yet, Microsoft has invested over $13 billion in OpenAI for a vaporware product that is, I can only imagine, used to mostly keep LinkedIn (also owned by Microsoft) properly fed with low effort, engagement slop.

And yet, Microsoft posted increased profits by 18% in April 2025, above analyst predictions and up 13% compared to last year’s fiscal quarter results.

And yet, Phil Spenser’s memo sent to employees today says:

I recognize that these changes come at a time when we have more players, games, and gaming hours than ever before. Our platform, hardware, and game roadmap have never looked stronger. The success we’re seeing currently is based on tough decisions we’ve made previously.

And yet, Satya Nadella, CEO of Microsoft, received $79.1 million in total compensation as Microsoft’s market value soared past $3 trillion in October 2024.

And yet, Microsoft’s share value reached its all-time high on June 27, last Friday, topping out at $495 per share. At time of writing, the share value is hovering around $491 per share, a number I suspect will go up with today’s news of layoffs.

For those affected by today’s layoffs, people who will not be able to pay rent, afford their medications, or are experiencing soaring grocery prices as your pay evaporates, Phil Spenser has some kind words for you:

Prioritizing our opportunities is essential, but that does not lessen the significance of this moment. Simply put, we would not be where we are today without the time, energy, and creativity of those whose roles are impacted. These decisions are not a reflection of the talent, creativity, and dedication of the people involved. Our momentum is not accidental—it is the result of years of dedicated effort from our teams.

I don’t think there are many grocery stores out there accepting “talent, creativity, and dedication” in exchange for bread, but what do I know.

In Phil Spenser’s January 2024 memo from the layoff of 1,900 Activision Blizzard employees, he states:

As we move forward in 2024, the leadership of Microsoft Gaming and Activision Blizzard is committed to aligning on a strategy and an execution plan with a sustainable cost structure that will support the whole of our growing business.

Since then, another 16,000 people have been laid off from Microsoft at large, around half coming from Microsoft Gaming. It appears a sustainable cost structure that accounted for employees has not been developed in the past year and a half. The games keep coming, Game Pass continues to grow, and everything has become an Xbox, including a partner handheld and a VR Headset. And yet.

After three years of watching, listening, and talking about layoffs in tech, games, journalism, and just about everywhere else, there’s not much to say anymore. You know all of this already, this blog post didn’t need to be written. But when you walk away from this piece, I want you to remember one thing: these companies are thriving (Microsoft Gaming is still actively hiring), these executives are getting record pay, and shareholders are receiving record profits. This is the system working as intended.

From Phil Spencer, again:

Thank you to everyone who has shaped our culture, our products, and our community. We will move forward with deep appreciation and respect for all who have contributed to this journey.

Thank you, indeed. Your sacrifice to the Line is appreciated and respected.