Microsoft’s gaming division, including Xbox Game Studios Publishing, cut hundreds of jobs across teams, from the Xbox graphics team to executive producers and developers on titles like Perfect Dark and Everwild. Even senior roles, like principal development leads and producers, were affected.
This shows no role is safe, no matter your position or employer, which is why it is always important to upskill yourself and continuously learn. In this blog, we will explore what exactly happened with the Xbox layoffs, AI’s role in it all, what you can do to find a new job, and the importance of self-development.
What Happened At Xbox and People Losing Their Jobs?
In early 2025, Microsoft cut nearly 9,000 jobs across the company, including roles within its gaming division. The move stunned the industry. Entire teams were affected, including staff at studios like The Initiative, developers of Perfect Dark, and Rare, working on Everwild.
Following the mass layoffs, an executive producer at Xbox Games reportedly told remaining staff they would need to rely on artificial intelligence to manage workloads going forward.
Matt Turnbull, a development lead producer at Xbox, suggested that those still employed should consider using AI tools such as ChatGPT and Copilot to help reduce the emotional and cognitive load caused by the cuts.
Meanwhile, platforms like LinkedIn were flooded with stories and portfolios from laid-off employees, highlighting both the personal and professional impact, showing affected employees were really feeling.
This round of job losses did more than shrink headcount as it signalled a shift in how Microsoft’s gaming business may operate, with AI beginning to fill the creative and production gaps left behind.
Ask ChatIs AI Replacing People?
It is not a secret that Ai is having an impact on the 2025 tech job market and workforce, and that we all turn to AI for help; however, there is one of the most controversial elements. The suggestion is that AI could help ease workload pressure after the layoffs.
Reports surfaced of managers advising remaining staff to “use AI” and experiment with AI-generated images, leading to backlash.
Words like “AI slop” started trending as artists and producers voiced strong feelings. The emotional load of losing your job is hard enough, and then being told a tool is a replacement for your voice only adds insult to injury.
We should use LLM AI tools to deal with times when you need a little bit of assistance, but it shouldn’t replace us. Ai is here to stay so instead of replacing workers, the best way you can put yourself in the best position is to understand how to use LLM AI tools efficiently.
A recent study found that 41% of employers plan to reduce staff in areas where AI can replicate human tasks. That’s why now, more than ever, finding ways to improve your skills while keeping your work authentic and human is so important.
What Can laid-off employees Do Next?
Here’s the truth. You can’t control corporate decisions. Layoffs, restructuring, budget cuts. These things often happen behind closed doors, driven by numbers rather than people. But you can control how you respond.
If you have been laid off, or even if you’re just feeling anxious watching it all unfold around you, this is the moment to pause, reassess, and shift gears. It is easy to feel powerless in these situations, but you are not. What you do next matters.
You may not be able to change what has already happened but you can take meaningful steps to shape what comes next.
Here are a few ways to start moving forward and take back control.
1. Give Yourself Space
It’s okay to feel it, as job loss is very personal, emotional, and can be mentally exhausting. It is important to recognise the cognitive load that comes with it and don’t rush into “fixing” mode. let yourself fully reboot before entering another role.
2. Reclaim Control Through Learning
While AI might be used as a stopgap and to prompt ideas, you are not replaceable. Tools like ChatGPT and Copilot can help spark ideas or speed things up, but they can’t bring the things that make your work truly meaningful. What you can do is add value where machines fall short, like bringing empathy, creativity, storytelling, emotional clarity, and decision-making into the mix. That’s the stuff people actually connect with.
If you’ve already been experimenting with tools like ChatGPT or Copilot, that’s a real competitive edge. It means you’re curious and open to learning, which already sets you apart. But don’t stop there. The people who grow through change are the ones who mix smart tools with their human strengths.
Now is the moment to upskill, especially in areas like:
- Prompt writing
- AI-assisted creativity
- Project management
- Game and UX design
- Brand storytelling
- Emotional intelligence in leadership
These skills are things that make you stand out, whether you’re looking for your next job or leading a team through change.
Even just one focused learning goal per month can shift your confidence and your value. Small steps count, and they build real momentum.
3. Refresh Your Personal Brand
Your LinkedIn is often the first place people go when they want to learn about you. It’s not just a place to list your job titles or experience. It’s a portfolio of how you think.
This is a great moment to give it a fresh update. Go beyond just adding dates or responsibilities. Share what you actually learned in your last role. What did you get better at? What problems did you help solve? What did the experience teach you?
Also, talk about how you’re adapting now. Maybe you’re learning new tools, working on a side project, freelancing, or just taking time to reset. That kind of honesty and reflection helps people connect with you.
And remember to show curiosity, not just that you’re trying to get by. Share what you’re excited to explore next. What are you reading, trying, or thinking about?
This is how people who have been laid off are starting to really stand out. They’re being vocal, honest, and growth-oriented. Not pretending everything is fine but showing they’re thoughtful, adaptable, and ready for what comes next.
Right now, being real matters more than being perfect. Let people see who you are and what you care about. That’s what makes your personal brand actually personal.
How Mexa Solutions Can Help You Stay Job-Ready
Navigating layoffs and career shifts can feel overwhelming, but you don’t have to do it alone. That’s where Mexa Solutions comes in. We specialise in helping professionals like you find your next opportunity and stay competitive in today’s evolving job market.
Whether you’re looking to break into a new role, explore contract opportunities, or get back into a position that aligns with your strengths, Mexa Solutions connects laid-off employees with Jobs that match their skills, experience, and ambitions.
Our team understands the unique challenges faced by creatives and tech professionals post-layoffs and can help you:
- Identify the most relevant skills for your industry and role
- Create personalised learning plans to upskill efficiently
- Build a standout portfolio showcasing your adaptability and creativity
- Navigate job searches with confidence through expert career coaching
- Harness AI tools like ChatGPT to boost productivity without losing your unique voice
With Mexa Solutions, you’re setting yourself up to thrive in a changing world.
Job Security Starts With Continuous Growth
If the Microsoft layoffs taught us anything this year, it’s that even the most innovative studios are vulnerable. However, if you’re reading this, you’re already doing what so many others won’t be, as you’re thinking ahead.
Keep learning. Stay visible. Don’t stop evolving.
When the next opportunity shows up, you won’t just be ready because you’ll be confident, current, and in control.
FAQ’S
How can employees experiment with using large language model AI tools effectively?
Experimenting with ways to use LLM AI tools involves learning prompt writing, AI-assisted creativity, and integrating AI into workflows without losing personal authenticity or emotional insight.
What role does AI play in advertising Xbox games now?
AI-generated images and content are increasingly used to advertise Xbox titles, allowing marketing teams to create fresh ideas faster while exploring new creative directions.
Is AI really replacing people in the creative and gaming industries?
Not entirely. While AI can support workflows, it’s not a true substitute for human input. The suggestion that AI could “fill the gap” left by laid-off employees caused strong feelings in people who believe creativity, emotional clarity, and storytelling can’t be automated.
This blog was written by Hollie Agombar, Senior Digital Marketing Executive at Mexa Solutions.
