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Managers Are Using AI to Determine Raises, Promotions, Layoffs

  • Microsoft announced a major restructuring of its Xbox division on Wednesday, cutting 9,000 jobs and canceling projects across multiple studios.
  • The cuts respond to a strategic shift toward cloud gaming and focus on core franchises amid a highly competitive market and economic pressures.
  • The restructuring ends development of titles like Perfect Dark and Everwild, closes The Initiative and Arkane Austin, and reduces Call of Duty support teams.
  • CEO Satya Nadella said AI now writes 20 to 30 percent of Microsoft’s code, reflecting a new game development model requiring fewer human resources.
  • These changes mark a pivotal moment shaping Xbox’s future, emphasizing efficiency and AI-driven processes while maintaining over 40 active projects in development.
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Fox 59 IndianapolisFox 59 Indianapolis
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Managers are using AI to determine raises, promotions, layoffs

Managers are now using AI to make decisions about raises, promotions, and even firings, according to a new survey.

·Indianapolis, United States
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Some Microsoft divisions already use artificial intelligence (AI) as a factor in their performance evaluations, but some executives are now calling for it to be made an official company-wide evaluation metric.

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Axios broke the news in Washington, United States on Wednesday, July 2, 2025.
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