Bethesda, id Software reportedly hit hard by Microsoft layoffs
As much as 50 percent of some teams affected by reductions, and more could be coming.
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As much as 50 percent of some teams affected by reductions, and more could be coming.
A running look — in reverse chronological order — at the bigger tech companies that have announced significant layoffs this year with AI as a stated factor.
Move affects ~20% of the gaming division, which will refocus on its biggest franchises.
Microsoft cut around 4,800 roles, or 2.1% of its global workforce, on Monday — the latest in a series of layoffs that’s stoking fears of AI replacing jobs. The layoffs will hit Xbox and commercial sales the hardest.
The 9 PM Teams call layoffs that vaporized an entire India engineering office aren't merely a cautionary tale—they are a case study in remote-first management rot. Around 150 employees were invited to a surprise Microsoft Teams call late in the evening and informed, without any prior warning, that their team was being shut down and the company was closing its India operations 1 [^2]. No severance. No transition. Just a kill switch flipped from a different timezone. This isn't a single rogue employer. It’s a playbook. The late-night call exploits the timezone gap to avoid in-person confrontation and suppress immediate collective response. It’s a clean, cowardly sever for a leadership class that has confused “remote” with “disposable.” How the 9 PM Teams call layoffs became a remote-first weapon The mechanics are always the same: a sudden, mandatory all-hands drops on calendars minutes before it starts. The meeting is short. An HR representative or a pre-recorded executive message delivers the news. Access is cut before anyone can ask a real question[^1:0][^2:0]. A former employee detailed the sequence in a viral social media post: “Around 150 members of our engineering team were invited to a 9 PM Microsoft Teams call, where we were informed that our team was being shut down”[^3]. The shock isn't accidental—it’s functional. Surprise prevents organizing. It prevents screen-recording. It prevents the kind of immediate, unified pushback that might force a negotiation on severance or notice periods. Red flag: When your office is “the offshore office” The structural vulnerability is clear. In many global firms, India operations function as a cost center rather than a strategic core. The moment a CFO runs a spreadsheet and sees a quick path to positive EBITDA by zeroing out a foreign subsidiary, the engineers there become a line item. The 9 PM Teams call layoffs are the logical endpoint of this relationship: the timezone isn't just a scheduling inconvenience, it’s a control
While AI dominates the layoff narrative, engineers as a share of total new hires have actually increased, according to SignalFire data.
A running look — in reverse chronological order — at the bigger tech companies that have announced significant layoffs this year with AI as a stated factor.
Unlike many of his tech industry peers who have cut thousands of jobs citing the need to restructure to make the most of AI, Robinhood's CEO Vlad Tenev conspicuously made no mention of AI in his note about layoffs.
What makes this combustible: at the very moment that tens of thousands of workers are being shown the door, a small cohort of AI insiders is becoming wealthy on a scale that's hard to comprehend.
Tools for Humanity, Sam Altman's identity verification company, is reportedly struggling to generate revenue and will downsize its staff.
Tech Companies Regret Firing Engineers for AI: The Quiet Rehiring Nobody's Talking About [2026] Klarna's CEO Sebastian Siemiatkowski stood on stage in 2024 and bragged that AI had replaced 700 customer service employees. The stock market loved it. LinkedIn influencers celebrated. And then, quietly, in 2025, Klarna started hiring humans again. That single reversal tells you everything about why tech companies regret firing engineers for AI. I've watched this pattern unfold across the industry, and a viral YouTube video by Pooja Dutt documenting these failures is now pulling over 10,000 views per day. The audience isn't just curious. They're vindicated. The tech industry laid off over 260,000 workers in 2023 alone, according to Layoffs.fyi , with many companies explicitly citing AI automation as justification. Now, in 2026, the bills are coming due. The companies that swung hardest at the "AI replaces engineers" thesis are the ones scrambling hardest to undo the damage. Why Did Companies Fire Engineers for AI in the First Place? The logic seemed airtight. AI can generate code faster than humans. AI can handle customer queries at scale. AI doesn't need benefits, PTO, or performance reviews. Executives saw a clean line from "AI generates output" to "we need fewer people," and they drew it with a Sharpie. I've been in enough executive planning meetings to know exactly how this plays out. Someone demos an AI tool that produces a working prototype in 20 minutes. The room gets excited. The CFO asks how many engineers they can cut. Nobody asks the harder question: what happens when that prototype needs to survive contact with production? The answer is that it breaks. Badly. Klarna is the poster child, but they're far from alone. Apple has spent two full years struggling with AI-driven improvements to Siri, despite being one of the most well-resourced engineering organizations on the planet. Even with virtually unlimited budget and talent, replacing deep engineering expertise
The company is reducing its workforce as it exits 22 countries, reduces management layers, and invests in its infrastructure to scale its platform.
The people deciding that AI can replace your job are also the ones least likely to understand what your job truly involves, according to Box founder Aaron Levie, who pointed to this as an example of “AI psychosis.” Indeed, ClickUp recently cut 22% of its workforce for AI agents, tech layoffs in 2026 are already nearly matching all of 2025, […]