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Microsoft 365 (formerly Office) includes Microsoft 365 Copilot app
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According to Amy Coleman (Microsoft’s executive vice president and chief people officer), the layoffs were not due to AI replacing employees, yet she admitted that AI is altering work methods. During the layoff period — Microsoft also shut down its office in Pakistan and laid off local staff as part of its transition to a software-as-a-service and AI-driven operating model. In July 2025 (Microsoft revealed plans for another layoff round), impacting about 9,000 employees in its largest reduction of workforce in over two years. The layoffs mainly impacted Activision Blizzard personnel, although some employees from Xbox and ZeniMax were also affected.
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