Company Check : Microsoft Cuts 9,000 Jobs As AI Soars

Microsoft is laying off nearly 4 per cent of its global workforce as it pours billions into artificial intelligence infrastructure, triggering fresh questions over priorities and pressure points at one of the world’s biggest tech firms.

A Costly AI Pivot Brings Organisational Shake-Up

The US tech giant confirmed this week that around 9,000 jobs (i.e. approximately 4 per cent of its 228,000-strong global workforce) will be cut in the latest round of restructuring. The layoffs, which follow a 6,000-person reduction announced in May, are part of Microsoft’s efforts to streamline operations and manage the spiralling costs associated with its aggressive push into artificial intelligence (AI).

Adjustments

A Microsoft spokesperson said the company was “implementing organisational and workforce adjustments” to ensure teams are “best positioned for the future.” Thesea changes include reducing management layers, simplifying internal processes, and consolidating teams and roles. The company also stated it aims to empower employees to “focus on meaningful work by leveraging new technologies and capabilities.”

While the job losses span multiple business units, reports indicate that Microsoft’s gaming division, sales teams, and international operations are among the hardest hit.

Betting on AI

At the heart of the cuts lies Microsoft’s extraordinary $80 billion capital expenditure plan for its 2025 fiscal year, most of which is being funnelled into AI infrastructure. That includes building out massive data centres and purchasing high-end chips to power services like its Copilot AI assistant and the broader integration of generative AI into tools such as Microsoft 365, Azure, and GitHub.

These moves reflect the company’s ambition to remain a leader in the AI arms race. For example, Microsoft is already the largest backer of OpenAI, the developer behind ChatGPT, and earlier this year hired DeepMind co-founder Mustafa Suleyman to head up a new AI division. CEO Satya Nadella has previously said AI will define the next era of computing, and Microsoft is positioning itself to be central to that transformation.

However, such ambition comes at a cost. For example, Microsoft’s cloud division, which includes Azure, is expected to see its profit margins shrink this quarter due to the steep capital outlay required to scale up AI services. This has prompted Microsoft to rebalance its operating model, trimming staff even as it invests heavily elsewhere.

Gaming Division Hit as Projects Cancelled

Although Microsoft has not publicly broken down the affected departments, reports( e.g. by The Verge and Bloomberg) appear to reveal significant disruption in its gaming business. For example, the company is reportedly shutting down ‘The Initiative’, a first-party studio behind the reboot of Perfect Dark, and cancelling the game’s development entirely. Another project, Everwild, is also understood to be shelved.

Studios including ZeniMax Online (makers of Elder Scrolls Online) and Turn 10 (known for Forza Motorsport) have also lost staff, while Barcelona-based King, part of the wider Microsoft Gaming division, is said to be cutting around 200 jobs, or 10 per cent of its workforce.

The gaming layoffs have raised concerns within the industry, particularly given Microsoft’s recent $69 billion acquisition of Activision Blizzard, completed in late 2023. Analysts say that while the company remains committed to gaming, the restructuring suggests a renewed focus on cost discipline and fewer experimental or long-gestation titles.

Sales and International Offices Also Affected

Beyond gaming, Microsoft also appears to be trimming back its sales organisation, particularly within its international teams. According to Washington state filings, more than 800 jobs will go in Redmond and Bellevue, two key hubs near Microsoft’s Seattle headquarters.

Other earlier reports also suggested that thousands of sales and customer service roles were under review as Microsoft looks to simplify go-to-market strategies and reduce duplication across territories. While Microsoft has not disclosed the exact breakdown, it confirmed that job losses are not limited to any one division or region.

A Wider Industry Pattern

It’s worth noting, however, that Microsoft is far from alone in recalibrating its workforce. For example, Meta, Google, and Amazon have all announced job cuts over the past year, despite maintaining strong revenues and investing heavily in AI. Meta recently confirmed plans to trim its “lowest-performing” 5 per cent, while Amazon’s Andy Jassy suggested that AI would “reduce the need” for corporate staff over time.

Microsoft’s latest round though has sparked fresh debate, particularly given the company’s strong financial position. Its stock remains near record highs, and demand for Azure and AI-linked services is surging.

Critics argue that cutting thousands of jobs while investing billions in unproven technologies may be short-sighted. “It’s hard to reconcile the scale of these layoffs with Microsoft’s healthy profits and booming stock price,” one former employee wrote on LinkedIn. “The AI race shouldn’t come at the expense of people’s livelihoods.”

There also appear to be concerns that the pace of AI infrastructure growth may outstrip customer demand. While Microsoft has pushed its Copilot AI across its software suite, uptake has been mixed. Some enterprise clients have voiced preference for using standalone tools like ChatGPT, citing cost and ease of use.

Implications for Businesses and Users

For Microsoft’s business customers, the shake-up could mean that the company’s intense focus on AI could accelerate the availability of new productivity tools and cloud capabilities. Its goal of embedding generative AI across software like Outlook, Excel, and Teams promises significant efficiency gains, if widely adopted.

However, job losses across sales and customer support teams may also create short-term disruption, especially for small and mid-sized businesses that rely on personalised assistance. It’s possible too that a leaner organisational structure may also slow responsiveness or delay product support in key markets.

Gaming users may also feel the impact. Microsoft has spent years trying to differentiate Xbox from rivals through exclusive titles and studio acquisitions. The cancellation of projects like Perfect Dark raises questions about the company’s creative roadmap, and whether its gaming strategy is still evolving or being scaled back.

Balancing Growth and Responsibility

Microsoft insists that the layoffs are necessary to “align its resources with strategic priorities” and adapt to a dynamic technology landscape. It’s clear, however, that the company is walking a fine line by trying to lead the AI revolution while avoiding the perception that it’s sacrificing stable jobs in the process.

With expectations running high across both the enterprise and consumer markets, Microsoft’s next challenge will be to prove that its AI investments can deliver real-world value, while maintaining the trust of its employees, users, and investors.

What Does This Mean For Your Business?

The real test for Microsoft will be whether its AI-led strategy delivers enough tangible business value to justify the level of disruption it is now inflicting. While the company remains profitable and well-positioned at the forefront of the AI sector, cutting 9,000 jobs (many in customer-facing and creative roles) risks damaging internal morale and external confidence. For UK businesses, this could mean less personalised support, slower response times, and uncertainty about future service structures, especially for smaller firms that depend on Microsoft’s cloud and productivity tools for day-to-day operations.

There is also a reputational cost to consider. For all the talk of long-term alignment and streamlined processes, this is the fourth round of cuts in a single year. That creates unease not just within Microsoft’s workforce, but across the tech industry more broadly. Partners and clients may begin to question how stable support structures will remain as Microsoft retools itself around AI. Even investors could grow wary if infrastructure spending continues to outpace revenue returns from products like Copilot and Azure AI.

None of this means Microsoft’s strategy is necessarily wrong. The company is doing what many others are attempting to do, pivoting towards what it believes will be the next great computing platform. However, the scale and speed of that pivot means it now faces pressure to show results quickly. If Microsoft can prove that its vast AI investments lead to genuinely better tools, improved business outcomes, and sustained growth, it may yet justify the cuts. If not, it could find itself having sacrificed stability and goodwill for a vision that was never as widely shared as it assumed.

Security Stop Press : Ingram Micro Hit by SafePay Ransomware Attack

IT giant Ingram Micro, a major global distributor of technology products and services, has confirmed it suffered a ransomware attack that forced key systems offline and disrupted global operations.

The incident, which began early on 4 July, was carried out by the SafePay ransomware group. Employees discovered ransom notes on their devices, and systems including Ingram’s Xvantage distribution platform and Impulse licensing tool were shut down. Microsoft 365 and Teams remain unaffected.

Ingram Micro confirmed the attack in a brief statement on 6 July, saying it had “identified ransomware on certain of its internal systems” and was working with cybersecurity experts while restoring services.

The SafePay group, active since late 2024, has hit over 220 organisations and is known for exploiting VPN vulnerabilities using stolen or weak credentials. In this case, the company’s GlobalProtect VPN is thought to be the entry point.

This attack highlights the importance of securing remote access with multi-factor authentication, regular updates, and strong password policies to prevent ransomware intrusions.

Sustainability-In-Tech : Warning About UK’s “Fast Tech” Habit

A surge in cheap, short-lived electronics is fuelling a growing e-waste crisis in the UK, according to new research from sustainability group Material Focus.

What Is Fast Tech And Why Does It Matter?

The term “fast tech” refers to low-cost, mass-produced electrical items such as mini-fans, earbuds, LED lights, charging cables, and novelty gadgets like light-up toilet seats and karaoke microphones. Like fast fashion, these products are typically bought on impulse, used briefly, and then discarded, often ending up in drawers, then bins … then landfill.

Warning Issued

Material Focus, a UK not-for-profit organisation focused on reducing electronic waste, has issued a clear warning that fast tech is booming, and it’s becoming one of the most environmentally harmful consumer trends. Through its Recycle Your Electricals campaign, the group has tracked rising demand and falling recycling rates and says the issue is now spiralling.

Sharp Rise in Fast Tech Spending

New data from the group shows that UK consumer spending on fast tech has risen sharply, from £2.8 billion in 2023 to a projected £11.6 billion by 2025. That includes more than £8 million spent last year on novelty items alone, with 7.9 million light-up toilet seats, LED balloons, sunset light projectors and similar gadgets sold in just 12 months.

Fast Use, Fast Disposal

The key point here is that what makes fast tech so problematic isn’t just the sheer volume of purchases, but what happens next. For example, despite containing valuable materials such as lithium, gold, aluminium and copper, over half of all fast tech products are either discarded in the bin or abandoned in drawers, never reaching proper recycling channels.

Material Focus estimates that a staggering 589 million small tech items will be thrown away or left unused in the UK this year alone (a 25 per cent increase on 2023 for example). That’s the equivalent of more than 2,200 football pitches covered in cheap electronics. Many of these items are poorly made, hard to repair, and not designed to last, making them difficult or impossible to recycle effectively.

“Fast tech might be cheap, but it’s not disposable,” said Scott Butler, executive director of Material Focus. “In fact, anything with a plug, battery or cable should never be binned.”

Fuelled By Seasonal Demand and Social Trends

One of the clearest examples of this growing problem came during last summer’s heatwave, which saw a 16 per cent year-on-year surge in demand for battery-powered mini-fans. Millions of these products were sold, many costing less than £5, but most were quickly discarded once the weather cooled.

Mini-fans may be the most visible symptom of the fast tech boom, but it’s worth noting that they’re far from the only culprits. For example, disposable vapes, cheap earbuds, USB sticks, LED party lights, and decorative solar lamps are now among the fastest-growing sources of e-waste in the UK.

An Average of 21 Fast Tech Items Each

A report by Material Focus has revealed that the average adult now owns 21 fast tech items, and buys nine more every year, while throwing away eight. The vast majority of these are either unused, stored out of sight, or incorrectly disposed of.

A Loss of Resources at Scale

The environmental cost goes far beyond the plastic waste. Fast tech items, however small, often contain valuable and finite raw materials. Previous research from Material Focus found that the UK’s unused electricals alone could contain over 38,000 tonnes of copper, a material that is critical to low-carbon technologies but is environmentally damaging to mine and process.

With global copper demand expected to outpace supply by 2030, the failure to recover materials from consumer tech waste is increasingly seen as a missed opportunity and a growing sustainability concern.

Repair and Recycling Barriers

Despite rising awareness, it appears that there remains a major disconnect between buying habits and disposal practices. For example, according to Material Focus, while 84 per cent of UK adults purchased at least one fast tech item last year, fewer than half of these items are recycled.

The organisation’s Recycle Your Electricals campaign includes a national locator tool for recycling points, and claims over 70 per cent of people now recycle unwanted larger tech products like laptops or TVs. However, the smaller the item, the less likely it is to be disposed of responsibly.

Sustainability experts warn that today’s throwaway tech culture is not inevitable. In fact, many point out that it’s a relatively modern trend and one that has accelerated in recent decades alongside cheaper manufacturing and faster retail cycles.

Change Is Possible

However, despite the gloomy findings, change is possible. For example, initiatives such as Right to Repair legislation and Extended Producer Responsibility schemes could help tackle the issue at its source. By encouraging product design that favours durability, ease of repair, and recyclability, and by making producers more accountable for what happens to their products at end of life, governments and regulators could help curb fast tech’s environmental toll.

Greenpeace UK has also warned about the particular problem of combining electronics with plastics. According to the group, these “toxic cocktail” products are very difficult to recycle and often end up being dumped in poorer countries with limited environmental protections.

Campaigners say the long-term solution must be a truly circular economy and one where manufacturers are incentivised to make products that last, and consumers are guided towards reuse, repair and recovery rather than single-use habits.

Why It Matters to Business

For UK businesses, the fast tech crisis is not just an environmental issue, but it also carries real regulatory and reputational risks. For example, companies involved in manufacturing, distributing or retailing these types of goods may soon face new scrutiny as policymakers turn their attention to the environmental impact of small electricals.

Extended Producer Responsibility requirements are already being tightened across various waste streams. As awareness grows, smaller tech products, particularly those containing batteries, are likely to be brought into sharper focus. Businesses may need to rethink how such products are marketed, labelled, and supported post-sale.

Retailers, in particular, are likely to come under pressure to provide in-store take-back schemes, promote repair-friendly products, or offer clearer disposal advice. Failing to act could damage brand perception, particularly among younger, sustainability-conscious consumers.

Opportunity For Innovation

At the same time, there appears to be an opportunity here for innovation. Companies offering sustainable alternatives, such as reusable or modular tech, certified refurbished goods, or community repair services, are already seeing growing demand.

A recent survey by WRAP found that 68 per cent of UK consumers would prefer to buy from brands that promote repair and recycling, while over half of under-35s are actively avoiding “throwaway” gadgets in favour of greener alternatives.

For now, however, the message from Material Focus is that the fast tech crisis isn’t going away, and the time to act is now. Whether through better design, smarter purchasing, or responsible end-of-life options, both businesses and individuals have a role to play in breaking the cycle.

What Does This Mean For Your Organisation?

Fast tech trend is no longer a fringe issue and, as Material Focus has highlighted, now appears to be shaping consumer habits, driving waste volumes, and locking away critical raw materials at an accelerating pace. While awareness may be rising, it seems that practical change remains uneven and limited, particularly when it comes to the small, cheap items that escape formal recycling systems. The mismatch between the scale of the problem and the systems in place to deal with it is growing, not shrinking.

For businesses, the message is becoming harder to ignore. Retailers and tech brands may soon be expected to take more responsibility for the afterlife of their products, not just the sale. That includes clearer labelling, support for repair schemes, and accessible recycling pathways. Businesses that fail to adapt could face regulatory pressure and reputational damage, while those that invest early in more circular models could find themselves gaining a competitive advantage in a shifting market.

Manufacturers may also come under pressure to change how they design and assemble products in the first place. Products that are easy to dismantle, built to last, and designed with repair and reuse in mind are likely to become more desirable to both regulators and customers. At the same time, public bodies, sustainability campaigners and local authorities all have a role to play in making responsible disposal easier and more visible.

Fast tech may have started as a convenience trend, but it is now creating lasting consequences across the economy, environment and supply chain. As the volume of fast tech continues to climb, the case for coordinated, large-scale intervention becomes stronger. For UK businesses, this is a chance to be part of the solution, not just another source of the problem.

Tech Tip – Paste as Plain Text with Ctrl + Shift + V

Pasting something into an email or document and don’t want all the messy fonts or colours? Use Ctrl + Shift + V instead of Ctrl + V to paste without formatting.

How to:

– Highlight and copy your text as normal (Ctrl + C).
– When pasting, press Ctrl + Shift + V instead of just Ctrl + V.
– The text will appear as plain, unformatted text.

What it’s for:

Saves time when you need clean content for emails, reports, or shared documents—no more wasting time stripping out inconsistent fonts or hidden links.

Pro‑Tip: This shortcut works in Chrome, Word, Outlook, Gmail and many modern apps. Ideal for shared docs where consistent formatting matters.

Featured Article : Google’s New Voice-Driven Search

Users can now hold real-time voice conversations with Google’s AI-powered Search, thanks to a major new feature rollout in the Google app for Android and iOS.

Search Goes Conversational

Google this week announced the launch of Search Live with voice input, a new capability inside the Google app that allows users to engage in back-and-forth spoken conversations with its AI-powered Search tool. Rolled out first in the United States, the feature is initially available to those who have opted into the AI Mode experiment in Google Labs, the company’s testing platform for early-access features.

Hands-Free Search

The launch marks a step forward in how users interact with Search, with Google positioning the update as a more natural, hands-free way to discover and explore information while multitasking or on the move.

Use the “Live” Icon

A dedicated “Live” icon now appears within the Google app interface, allowing users to tap and speak their queries aloud. The AI responds in spoken form, and users can follow up with further questions to refine or expand the topic, thereby mirroring a more human-like back-and-forth conversation.

According to Google, Search Live “lets you talk, listen and explore in real time,” giving users the ability to access web-based information while continuing to use other apps or even switching between tasks. The tool also provides on-screen links to source material, allowing users to dig deeper into AI-generated answers.

Building on Gemini and Search Infrastructure

Search Live actually runs on a custom version of Gemini, Google’s multimodal large language model, which powers many of its generative AI tools. The Gemini model used in AI Mode has been specially adapted to support live voice input, real-time responses, and integration with Google Search’s existing ranking and quality systems.

Liza Ma, director of product management at Google Search, explained in a company blog post that the system combines “advanced voice capabilities” with the reliability of Search’s “best-in-class quality and information systems,” ensuring that responses are both conversational and trustworthy. She also confirmed the use of Google’s ‘query fan-out’ technique, which enables the system to return a more diverse and useful range of web content in response to user questions.

For example, a user might ask, “What are some tips for preventing a linen dress from wrinkling in a suitcase?” and then follow up with, “What should I do if it still wrinkles?” The AI answers audibly while presenting related links on screen. This continuity is key to what Google hopes will be a smoother, more context-aware search experience.

How and Where to Access It

At launch, Search Live with voice is available only to users in the U.S. who have joined the AI Mode experiment through Google Labs. It works on both Android and iOS via the official Google app. There is currently no timeline for a broader international rollout, though Google says it intends to expand features and availability in the coming months.

Users who have access will know because they see a new “Live” microphone icon below the search bar in the app. Once activated, they can ask a question out loud and receive a spoken response. Users can view a transcript of the interaction, continue the conversation via typing if preferred, and even revisit past queries via the AI Mode history log.

Multitask While it Works in the Background

Also, because Search Live works in the background, it enables a degree of multitasking not previously possible with voice-based search tools. For example, a user could begin a conversation in the app, switch to messaging or maps, and continue speaking to the AI without interruption.

Voice, Visuals, and What Comes Next

The introduction of voice input is actually just one part of Google’s broader plan to bring real-time multimodal capabilities into Search. For example, at Google I/O in May 2025, the company previewed future updates that will allow users to combine voice interaction with real-time visual input via their phone’s camera, building on advances made in its Project Astra research and the ongoing development of Google Lens.

Multimodal Search

This evolution represents a deeper move by Google into what’s referred to as multimodal search, whereby users can interact with AI not just through typing or talking, but by showing it what they see. In practical terms, this could include pointing the phone at a confusing diagram or damaged object, asking what it is, and getting a contextual explanation, complete with suggested web links, video tutorials or shopping sources.

It also echoes the direction competitors are taking. For example, OpenAI’s ChatGPT has recently introduced voice interaction capabilities in its mobile apps, and Perplexity AI has gained traction for its own real-time web search and voice tools. Google’s response, with Search Live, is both a defensive and strategic step to stay ahead in what is quickly becoming a crowded, AI-first search market.

A New Frontier for Business and Advertisers?

For business users, the implications of voice-first search are far-reaching. For example, in sectors such as logistics, retail, and field service, the ability to conduct voice-based queries while driving or working could prove invaluable. Search Live also introduces potential benefits for productivity, especially for knowledge workers trying to conduct research or fact-checks while multitasking between devices or applications.

It may also signal a new phase for Google’s advertising ecosystem, although details remain unclear. As Search becomes more conversational and voice-led, traditional search result ads, particularly those dependent on text input and visual scanning, may need to evolve. It’s not yet known how, or if, Search Live results will incorporate sponsored content.

The visual links shown alongside voice answers could potentially become prime real estate for future advertising formats. However, Google has so far remained quiet on how monetisation will work within AI Mode. With more users consuming answers audibly and potentially clicking fewer links, publishers and advertisers will be watching closely.

Challenges

Despite the promise, it should be noted that there are several challenges ahead. For example, accuracy and reliability remain key concerns for AI-generated search responses. While Google stresses its Gemini-based AI uses the same quality controls as regular Search, AI hallucinations (where systems confidently give false or misleading answers) are still a known risk in generative models.

The opt-in nature of the feature also limits immediate user exposure and feedback. By placing Search Live behind the AI Mode experimental wall, Google is clearly seeking to manage rollout cautiously but this also means that the majority of users globally still can’t access or evaluate it.

There are also privacy and data security implications, particularly with voice-based input and persistent conversation histories. Google maintains that users can view, manage or delete their AI Mode interactions, but questions remain over how voice data is processed, stored, or used to train models.

One other aspect critics may point to is the increasing opacity of sources in AI answers. For example, while Google includes clickable links alongside Search Live responses, these can sometimes appear secondary to the spoken reply, which may not fully represent the nuance or breadth of available information. Ensuring transparency and balance in summarised answers will be crucial to maintaining trust, especially as Search Live expands into more domains.

What Does This Mean For Your Business?

The introduction of Search Live could be seen as the next step in its natural progression towards Google’s long-term vision for AI-powered search. By blending real-time voice interaction with the depth of web content, Google is essentially positioning itself not just as a search engine but as a more intuitive, responsive assistant capable of handling everyday queries in more dynamic, human-like ways. However, the fact that it’s limited to U.S.-based testers in Labs signals Google’s awareness of the stakes involved. It is not just testing technology but testing trust, usability and commercial viability all at once.

For UK businesses, this could open up important new opportunities once rolled out more widely. Voice-driven interaction with AI may reduce the need for screen time in roles where hands-free efficiency matters, i.e. from trades and transport to healthcare and hospitality. It could also help knowledge workers process information faster while juggling tasks, potentially enhancing productivity and reducing friction in routine research or client support work. There are potential implications for business intelligence and even internal training, particularly once real-time camera input is layered in. But these benefits will only be realised if the underlying AI delivers reliable and verifiable responses at scale.

Advertisers and content publishers are likely to be more cautious. With fewer visual interactions, the conventional search engine results page model may weaken. If users hear an answer but don’t tap the links shown, that affects traffic and engagement metrics. This will raise fresh questions about how brands position themselves within voice-first search and whether new advertising formats will emerge within AI Mode or remain separated. Also, the monetisation path here is still not altogether clear and, as Google experiments with form, it may need to reassure partners that function won’t entirely override visibility.

Meanwhile, Google’s competitors such as OpenAI and Perplexity AI will, no doubt, be watching closely. Each is racing to define the next evolution of everyday search, combining voice, visuals and real-time reasoning. Google still has the infrastructure advantage, but the race is no longer just about data—it’s about usability, privacy, and user confidence. In that context, Search Live’s success may depend as much on how it is governed and explained as how well it works technically.

Whether Search Live becomes the new normal or remains a feature for power users will likely depend on the clarity of its responses, the transparency of its sources, and the ease with which users (especially businesses) can trust it as a tool rather than a black box. What is clear already is that Google is laying groundwork for a future where the way we search is no longer typed, but spoken, shown and responded to in real time. Once mainstream, that could fundamentally change how we interact with the web.

Each week we bring you the latest tech news and tips that may relate to your business, re-written in an techy free style. 

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