- So far, Microsoft has announced at least 1,000 of the 10,000 employees it plans to lay off.
- The fine affects employees of Microsoft's Web Experience Group, known internally as WebXT.
- WebXT includes the team responsible for integrating ChatGPT's AI technology with Bing.
Microsoft has notified at least 1,000 of its 10,000 employees it plans to lay off in March, including teams overseeing web products like Bing and Edge and devices like the Surface Hub, according to employee- and Insider-verified documents.
Affected entities include Microsoft's Web Experience Group, known internally as WebXT, which includes the company's Bing search engine and Edge web browser. It should be noted that this department is responsible for integrating the ChatGPT technology into Bing.
ChatGPT is Microsoft's acclaimed OpenAI chat tool that answers questions amazingly. Microsoft is reportedly investing $10 billion in OpenAI, the company that develops ChatGipt. Earlier this year, The Information reported that Microsoft plans to use an AI similar to ChatGPT to provide users with answers to some search queries. This AI-powered version of Bing could arrive before the end of March, the news added.
A Microsoft employee suggested the resignations would prompt Microsoft to cut high-wage employees and hire new, lower-wage workers in areas like Bing. Another employee said part of the WebXT team may be a replica of work done by Microsoft's partnership with OpenAI. The person who spoke to Insider requested anonymity, discussing a personal matter.
Microsoft employees told Insider that the fine affects organizations beyond sales, recruiting, HR and consulting roles, including devices (particularly employees working on Surface Hub tablets) and games such as publisher Bethesda Software. It was previously reported that the company may cut a third of its workforce as the hiring ban is not expected to ease for a year or more.
Meanwhile, Insider previously reported that Microsoft is asking some managers to identify their underperforming employees so the company can fire them sooner rather than include them in effective plans.
Many employees were officially notified of the cuts in an email from CEO Satya Nadella, who announced plans to cut 10,000 jobs in late March. An offended employee said he later received an invitation to a meeting from the vice president where he was briefed on planned layoffs and received a package detailing his severance package.
The dismissed employees remain in the company for 60 days, during which they are unavailable for work. This is to ensure that workers receiving employer-sponsored visas can find other jobs without having to leave the country. The employees will then receive at least one month's severance pay.
Microsoft reported 878 workers at its Washington, DC headquarters, according to mandatory filings with the state's Department of Occupational Safety and Health. The company announced 46 layoffs in the state of California, including people in applied sciences, community management, customer service, product management and electricians, hardware, manufacturing, mechanics, reliability and software.
Do you work for Microsoft or want to share an idea? Contact reporter Ashley Stewart via Signal's encrypted messaging app (+1-425-344-8242) or by email (astwart@insider.com).
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