14 DAY TRIAL // UPDATE: Microsoft says these aren't layoffs happening in the news division, but actually "vendor contracts that are not being renewed in FY21." Original story below.
News services are still holding a key role in Microsoft’s long-term strategy, and Microsoft News, in particular, is one name that the company is betting big on going forward.
And while the company has previously bragged about using no less than 800 editors from over 50 locations across the globe to make sure that only the best news articles are curated for its users, Microsoft is now shifting to a new strategy that sees its current workforce actually decreasing.
And what Microsoft is reportedly doing as we speak is laying off some workers at various locations around the world, as the company will replace human beings with artificial intelligence.
Decision not caused by the health crisis
In other words, workers would no longer be used for curating news, as Microsoft will employ AI for the whole thing. Some 50 workers would be let go in the United States, while others in the United Kingdom are also expected to be laid off.
For many, the decision comes at a time that suggests the reason is the current economic climate generated by the global health crisis, but Microsoft says this isn’t the case, suggesting that the increased focus on AI is indeed what’s pushing the company to reconsider its approach for news services.
“Like all companies, we evaluate our business on a regular basis,” a Microsoft spokesperson was quoted as saying. “This can result in increased investment in some places and, from time to time, re-deployment in others. These decisions are not the result of the current pandemic.”
It remains to be seen if this push for AI is the right way to go in the long term, but it’s very clear that artificial intelligence itself serves as a more affordable alternative that many other companies could also go for.