Microsoft's AI bet deepens, thousands of jobs on the line
NEW YORK, June 19 — Microsoft is planning to cut thousands of jobs, particularly in sales, as the tech giant streamlines its workforce amid increased investments in artificial intelligence, Bloomberg News reported yesterday, citing people familiar with the matter.
The latest layoffs follow Microsoft's previous round of job cuts in May, which affected about 6,000 employees.
The tech giant has ramped up its investments in AI, aiming to solidify its leadership as companies across industries accelerate the integration of AI into their products and services to maintain a competitive edge.
Amazon CEO Andy Jassy said on Tuesday that the rollout of generative AI and agents will reduce its total corporate workforce in the next few years.
Microsoft has planned a capital expenditure of US$80 billion (RM341 billion) this fiscal year, with most of it aimed at expanding data centres to ease capacity bottlenecks for AI services.
The layoffs are expected to be announced early next month, following the end of the tech giant's fiscal year, the report said.
Microsoft declined to comment on the report.
The job cuts will not exclusively affect the sales teams, and the timing could still change, the report added.
Microsoft had 228,000 workers as of June last year. — Reuters
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
an hour ago
- The Star
Justice at stake as generative AI enters the courtroom
Judges use AI for research, lawyers utilise it for appeals and parties involved in cases have relied on GenAI to help express themselves in court. — Photo by Conny Schneider on Unsplash NEW YORK: Generative artificial intelligence (GenAI) is making its way into courts despite early stumbles, raising questions about how it will influence the legal system and justice itself. Judges use the technology for research, lawyers utilise it for appeals and parties involved in cases have relied on GenAI to help express themselves in court. "It's probably used more than people expect," said Daniel Linna, a professor at the Northwestern Pritzker School of Law, about GenAI in the US legal system. "Judges don't necessarily raise their hand and talk about this to a whole room of judges, but I have people who come to me afterward and say they are experimenting with it." In one prominent instance, GenAI enabled murder victim Chris Pelkey to address an Arizona courtroom – in the form of a video avatar – at the sentencing of the man convicted of shooting him dead in 2021 during a clash between motorists. "I believe in forgiveness," said a digital proxy of Pelkey created by his sister, Stacey Wales. The judge voiced appreciation for the avatar, saying it seemed authentic. "I knew it would be powerful," Wales told AFP, "that that it would humanise Chris in the eyes of the judge." The AI testimony, a first of its kind, ended the sentencing hearing at which Wales and other members of the slain man's family spoke about the impact of the loss. Since the hearing, examples of GenAI being used in US legal cases have multiplied. "It is a helpful tool and it is time-saving, as long as the accuracy is confirmed," said attorney Stephen Schwartz, who practices in the northeastern state of Maine. "Overall, it's a positive development in jurisprudence." Schwartz described using ChatGPT as well as GenAI legal assistants, such as LexisNexis Protege and CoCounsel from Thomson Reuters, for researching case law and other tasks. "You can't completely rely on it," Schwartz cautioned, recommending that cases proffered by GenAI be read to ensure accuracy. "We are all aware of a horror story where AI comes up with mixed-up case things." The technology has been the culprit behind false legal citations, far-fetched case precedents, and flat-out fabrications. In early May, a federal judge in Los Angeles imposed US$31,100 (RM 132,532) in fines and damages on two law firms for an error-riddled petition drafted with the help of GenAI, blasting it as a "collective debacle." The tech is also being relied on by some who skip lawyers and represent themselves in court, often causing legal errors. And as GenAI makes it easier and cheaper to draft legal complaints, courts already overburdened by caseloads could see them climb higher, said Shay Cleary of the National Center for State Courts. "Courts need to be prepared to handle that," Cleary said. Transformation Law professor Linna sees the potential for GenAI to be part of the solution though, giving more people the ability to seek justice in courts made more efficient. "We have a huge number of people who don't have access to legal services," Linna said. "These tools can be transformative; of course we need to be thoughtful about how we integrate them." Federal judges in the US capitol have written decisions noting their use of ChatGPT in laying out their opinions. "Judges need to be technologically up-to-date and trained in AI," Linna said. GenAI assistants already have the potential to influence the outcome of cases the same way a human law clerk might, reasoned the professor. Facts or case law pointed out by GenAI might sway a judge's decision, and could be different than what a legal clerk would have come up with. But if GenAI lives up to its potential and excels at finding the best information for judges to consider, that could make for well-grounded rulings less likely to be overturned on appeal, according to Linna. – AFP
Malay Mail
2 hours ago
- Malay Mail
Elon Musk's SpaceX Starship explodes during ‘routine' Texas test, no injuries reported
HOUSTON, June 19 — One of tech billionaire Elon Musk's SpaceX Starships exploded during a routine test late yesterday in Texas, law enforcement said, adding that no one was injured. The Starship 36 suffered 'catastrophic failure and exploded' at the Starbase launch facility shortly after 11pm (0400 GMT Thursday), a Facebook post by the Cameron County authorities said. Musk's Space X said the rocket was preparing for the tenth flight test when it 'experienced a major anomaly while on a test stand at Starbase'. 'A safety clear area around the site was maintained throughout the operation and all personnel are safe and accounted for,' Space X added on social media. 'There are no hazards to residents in surrounding communities, and we ask that individuals do not attempt to approach the area while safing operations continue.' Starbase on the south Texas coast, near the border with Mexico, is the headquarters for Musk's space project. Standing 123m tall, Starship is the world's largest and most powerful rocket and central to Musk's long-term vision of colonizing Mars. The latest setback follows an explosion of a prototype Starship over the Indian Ocean in late May. The biggest and most powerful launch vehicle ever built had lifted off on May 27 from the Starbase facility, but the first-stage Super Heavy booster blew up instead of executing its planned splashdown in the Gulf of Mexico. The previous two outings also ended poorly, with the upper stage disintegrating over the Caribbean. — AFP
Free Malaysia Today
3 hours ago
- Free Malaysia Today
US Fed keeps interest rates unchanged in face of Trump criticism
The Federal Reserve kept the benchmark lending rate at a range between 4.25% and 4.50% at the end of its two-day meeting. (EPA Images pic) WASHINGTON : The US Federal Reserve (Fed) held interest rates steady for a fourth consecutive meeting yesterday, forecasting higher inflation and cooler growth this year as President Donald Trump's tariffs begin to take hold and geopolitical uncertainty swirls. Fed chair Jerome Powell told reporters the central bank would make better decisions if it waited a few months to understand how tariffs impact inflation, spending and hiring, in a sign that the next rate adjustment could take some time to materialise. For now, he expects to learn more 'over the summer', while officials appear increasingly divided on whether they can cut interest rates at all in 2025. The Fed kept the benchmark lending rate at a range between 4.25% and 4.50% at the end of its two-day meeting, with officials penciling in two rate reductions this year, similar to earlier projections. However, there was growing divergence among Fed officials participating in the meeting, with a smaller majority expecting the central bank to lower rates at least twice. The Fed's decision drew the ire of Trump, who has repeatedly pressured the independent central bank for rate cuts. He wrote on his Truth Social platform that Powell was 'the WORST' and a 'real dummy, who's costing America $Billions!'. Hours before the meeting, he had told reporters at the White House that 'We have a stupid person, frankly, at the Fed'. 'We have no inflation, we have only success, and I'd like to see interest rates get down. 'Maybe I should go to the Fed. Am I allowed to appoint myself?,' he added. The Fed said in a statement earlier that 'uncertainty about the economic outlook has diminished but remains elevated'. The central bank also cut its expectations for economic growth this year and raised its inflation and unemployment forecasts, in its first updated projections since Trump in April unleashed sweeping 10% tariffs on almost all trading partners. 'Increases in tariffs this year are likely to push up prices and weigh on economic activity,' Powell said. 'Avoiding a more persistent impact depends on the size of levies' effects, how long it takes for them to pass through to prices, and keeping expectations anchored,' he added. 'Well-positioned' Powell maintained that the Fed is 'well-positioned to wait to learn more' before considering changes to interest rates. 'Because the economy is still solid, we can take the time to actually see what's going to happen,' Powell said. 'We'll make smarter and better decisions if we just wait a couple of months,' he added. The Fed's call was in line with analysts' expectations. As officials anticipate more clarity on the impact associated with higher tariffs over the summer, 'financial markets are not expecting any movement in rates prior to September,' said KPMG chief economist Diane Swonk. Major US indexes ended little-changed yesterday. Ryan Sweet, chief US economist at Oxford Economics, said the Fed would want evidence that inflation is headed back to its 2% target 'before sounding all clear'. 'Preemptive rate cuts don't appear to be on the table, implying the bar is high for the central bank to cut in July,' Sweet said. Swonk said, however, 'there is a very strong argument that absent the tariff-induced inflation, the Fed would be cutting rates now,' noting that the labour market is slowing. Yesterday, the Fed cut its expectations for 2025 economic growth to 1.4% from its March projection of 1.7%. It also raised its inflation forecast to 3% and that of the unemployment rate to 4.5%. Asked about conflict in the Middle East as a clash between Israel and Iran heats up, Powell said that although it was possible to see higher energy prices, these 'don't generally tend to have lasting effects on inflation'. Trump has pointed to benign US inflation in arguing for cuts. More recently, he cast such a move as a way for the country to 'pay much less interest on debt coming due,' overlooking the fact that lower interest rates usually raise consumer prices. Powell has maintained that the Fed's rate-setting committee would make its decisions solely on objective and non-political analysis.
