Microsoft Cuts 9,000 Jobs, Then Posts an AI-Generated Image to Hire New Staff

Microsoft Layoffs 2025: What’s Happening?

In July 2025, Microsoft announced a fresh round of layoffs, letting go of around 9,000 employees. This came as a big shock to the tech world, especially because Microsoft had already done multiple rounds of layoffs earlier this year. In total, the company has now laid off more than 15,000 employees in 2025.

According to reports, CNBC mentioned that these layoffs affected less than 4% of Microsoft’s global workforce and were spread across different teams and departments. The company claimed that the move was aimed at streamlining its operations and reducing management layers.

But the timing of everything hasn’t really helped Microsoft’s image. Just days after the layoffs, the company shared a hiring post for its Xbox Graphics team, and what caught everyone’s eye was an AI-generated image used in the job listing. That’s where things started to go downhill.

The Controversial Hiring Post

The job post was about hiring two new engineers: one Senior Software Engineer Xbox Graphics and another Software Engineer 2 Xbox Graphics, both based in Microsoft’s Redmond, Washington office. One of the roles even offered full remote work.

The caption said:

The Xbox Graphics team is hiring folks with experience with device drivers, GPU performance, or related validation or engineering system experience.

What really grabbed attention wasn’t the job profile itself but the image used alongside it. The post had an AI-generated image that showed a girl working on a computer.

But the image looked off. The girl was staring at the back side of the monitor, which made no sense, and the whole visual felt unrealistic and robotic.

Netizens React: “At Least Hire a Good Designer”

People on social media, especially on LinkedIn, wasted no time pointing out the irony. Microsoft had just fired thousands of employees, including creative professionals and now they were using AI to do a designer’s job.

Some users even mocked the company saying things like:

How about you hire a graphic designer first?
This is the Xbox Graphics team? Seriously?
Microsoft fired humans and replaced them with mid AI art.

Indians too shared their opinions, many saying in Hindi or Hinglish:

Bhai, design banwane ka bhi budget nahi bacha kya?
Yeh toh direct insult hai un sab creatives ka jo fire hue hain.

The image quality and awkward posture of the girl in the photo became a laughing stock. It looked like the image was made in a hurry without checking the final output. In short, people weren’t just disappointed they were angry.

Why the Backlash Feels So Personal

See, the timing of this whole thing is what made people even more upset. On one hand, thousands of employees, many of whom were creative professionals and developers, were suddenly jobless.

On the other hand, Microsoft posted a job hiring ad with AI art, which could have easily been made by an actual human designer maybe even one of those laid-off employees.

It almost felt like a slap in the face.

People pointed out how big tech companies are increasingly relying on AI to cut costs, even for tasks where human creativity matters the most. And with job insecurity already so high, this just added fuel to the fire.

The Bigger Picture – Layoffs, AI, and Responsibility

Let’s take a step back.

Microsoft isn’t the only company downsizing in 2025. Others like Autodesk, Chegg, and CrowdStrike have also laid off employees this year. Even ADP, the payroll company, reported that the US private sector lost 33,000 jobs in June alone (source).

But Microsoft’s situation stands out because it’s one of the world’s most profitable tech giants. In the March quarter alone, they reported $26 billion in net income.

So, people are questioning whether these layoffs are truly necessary or just another cost-cutting move to boost stock prices.

And when a company that big uses AI-generated art instead of hiring a designer for something as public-facing as a job post, it really hits a nerve.

Final Thoughts – Microsoft Needs to Read the Room

Look, there’s nothing wrong with AI when used responsibly. But when thousands of employees are fired, it feels cold and out-of-touch to use AI tools for something that a real person could and should do.

In this case, it wasn’t just about the image. It was about what it symbolized a company choosing automation over people right after letting them go.

Microsoft probably didn’t expect this kind of backlash. But maybe this is a moment to reflect not just for them, but for all big tech companies. The message from users is loud and clear people matter.

Creativity matters. And if you’re building the future with AI, don’t forget the humans who helped build your present.

Related Reads & Sources