Xbox Producer Faces Backlash for AI Advice After Massive Layoffs

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Criticism has been mounting towards an executive producer at Microsoft’s Xbox Game Studios, as they faced backlash for suggesting AI tools to employees who had recently been let go in the gaming industry. On July 2, 2025, it was revealed that Microsoft would be implementing significant layoffs, impacting approximately 4% of its workforce, or roughly 9,000 employees. The gaming divisions were particularly hard hit, with studios like The Initiative being closed down, projects such as the reboot of Perfect Dark and Everwild by Rare being canceled, and a reduction in staff at other major developers under the Xbox umbrella, including Forza Motorsport’s Turn 10.

In a since-removed LinkedIn post, Xbox Game Studios executive producer Matt Turnbull suggested that those who’ve been let go employ artificial intelligence tools to alleviate the emotional and mental strain caused by job loss. He acknowledged that these types of tools often spark strong reactions, but he felt it was important to provide helpful advice given the situation. He proceeded to suggest several AI suggestions for career development, professional networking, and self-reflection, including one aimed at helping workers combat feelings of impostor syndrome.

As reported by VGC, a post that was subsequently removed triggered a strong response from experts in the gaming industry and ex-employees of Microsoft who had been affected by layoffs. In response to this, Eric Smith, a producer at ZeniMax Online whose project was terminated due to Microsoft’s redundancies, expressed “Read the room dude.” Paul Murphy, a game designer, retorted with “I’m guessing you’re trying to be helpful, but what on earth?” Murphy urged Turnbull to “grant them the respect they have earned and assume they are capable of writing their own resumes.

After Mass Layoffs, Xbox Game Studios Producer Recommends AI To Former Workers

Matt Turnbull, Executive Producer at Xbox Game Studios Publishing – after the Microsoft layoffs – suggesting on Linkedin that may maybe people who have been let go should turn to AI for help. He seriously thought posting this would be a good idea. — Brandon Sheffield (@brandon.insertcredit.com) 2025-07-04T03:48:10.841Z

In the aftermath of previous rounds of layoffs in 2023 and 2024 affecting over 10,000 Microsoft workers, another significant round of job cuts, impacting approximately 6,000 employees, has taken place this year. This recent reduction adds to the total number of Microsoft employees who have been let go since 2023, bringing the grand total to more than 25,000. Many of these affected workers were part of Xbox Games Studios and other gaming divisions within the company.

Turnbull’s message appears particularly insensitive given Microsoft’s recent focus on artificial intelligence, which raises concerns about workers losing their jobs due to AI advancements. In fact, by 2025, Microsoft plans to invest over $80 billion to expand its AI capabilities, increasing its overall investment in AI beyond the $100 billion mark.

Over the past ten years, Microsoft has invested over $100 billion in acquiring well-known game development studios like Activision Blizzard, ZeniMax Media, Mojang, and Rare. Lately, these acquisitions have been hit by a wave of layoffs that are part of a broader restructuring at Microsoft. An internal memo from Phil Spencer to Xbox staff suggests that the job reductions aim to streamline management structures, enhancing agility and efficiency.

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2025-07-04 17:13