Following Major Layoffs, Xbox Executive Proposes AI as a Remedy


Thousands of Microsoft employees who were recently let go, amid one of the company’s most significant layoffs in years due to industry upheaval, now have Microsoft Copilot as a resource for coping with the emotional fallout, as stated by an Xbox executive.

This perspective was shared in a now-removed LinkedIn message from Matt Turnbull, the executive producer at Xbox Game Studios Publishing, noted by gaming blog Aftermath, which indicated:

“I recognize that such tools can provoke intense emotions among individuals, but it would be negligent of me not to provide the best guidance possible given the situation. I have been exploring methods to utilize LLM AI tools (like ChatGPT or CoPilot) to help alleviate the emotional and cognitive burden associated with job loss.”

On July 1, Xbox’s parent organization declared it would be laying off around 9,000 employees — roughly four percent of its total workforce — to ensure the company’s readiness for success in a “dynamic marketplace.” These job reductions primarily impacted the gaming segment, specifically Xbox personnel. Just months earlier, Microsoft had eliminated 6,000 positions, utilizing similar justifications as those for the latest layoffs, and following earlier cuts in 2023 that resulted in 10,000 employees departing.

Numerous technology firms are scaling back their staff, citing shifts in the market and the influence of generative AI. Some CEOs, including Meta’s Mark Zuckerberg and Klarna’s Sebastian Siemiatkowski, have openly expressed their plans to replace jobs and processes with AI.

“During a period when mental energy is low, these tools can aid in getting you unstuck more rapidly, calmly, and with enhanced clarity,” Turnbull wrote, suggesting CoPilot for assistance with job searching and fostering “emotional clarity and confidence.” Microsoft CoPilot has reportedly become vital for Microsoft employees in recent months as the company aims to promote the assistant to other businesses.

In May, CEO Mustafa Suleyman mentioned the company’s efforts to position CoPilot as an emotionally supportive companion for Gen Z and millennial users, with the agent now capable of “sensing a user’s comfort limits, diagnosing problems, and recommending solutions,” as reported by Fortune.

Experts have widely cautioned against utilizing AI-driven chatbots as substitutes for human therapy and emotional support. In January, the American Psychological Association issued a letter imploring the Federal Trade Commission to look into harmful chatbots that misleadingly promote psychological or mental health assistance. The use of AI tools by therapists, including agentic AI, recording, transcription tools, and notetakers, has raised additional concerns about digital privacy.

Nevertheless, the tech sector continues to attract consumers by developing more “emotionally intelligent” agents, such as Microsoft’s CoPilot. OpenAI CEO Sam Altman has referred to ChatGPT as a life advisor for younger individuals, even as regulators have warned about employing the tool for therapeutic purposes.