After major layoffs, an Xbox Game Studios executive advised former Microsoft employees to use AI tools like Microsoft Copilot to handle the stress of job loss. This advice, from Executive Producer Matt Turnbull in a now-deleted LinkedIn post, sparked debate about AI’s role in mental health, the suitability of tech-based coping strategies, and the impact of automation at work.
Microsoft’s Latest Layoff Wave
Scale and Rationale
On July 1, 2025, Microsoft announced it would cut 9,000 jobs, about 4% of its global workforce. This follows a 6,000-job cut earlier this year and a 10,000-role reduction in 2023. CEO Satya Nadella stated these layoffs are crucial for maintaining agility in a fast-changing market influenced by economic challenges and the swift rise of generative AI.
Microsoft’s job cuts mainly hit the gaming division, especially Xbox Game Studios, affecting Turnbull and others. Other affected areas included cloud computing, hardware engineering, and corporate support. The cuts were due to market pressures, rising costs, and the need to invest in growth areas like AI and cloud services.
Industry-Wide Trend
Microsoft is not alone. Major technology firms, from Amazon and Meta to Google and Intel, have all trimmed headcounts amid slower revenue growth and shifting priorities. Many CEOs have explicitly linked workforce reductions to the efficiencies unlocked by AI, predicting that large language models and automation tools will increasingly replace routine tasks and reshape entire job categories.
The LinkedIn Post: AI as Emotional Support
Turnbull’s Recommendation
Matt Turnbull, in a LinkedIn message, highlighted the emotional strain of sudden job loss and advised using AI chatbots for self-support. He acknowledged the mixed feelings these tools evoke but emphasized their potential benefits. Turnbull shared his experiments with AI tools like ChatGPT and Copilot to ease the emotional and mental burden of unemployment. He suggested practical applications such as drafting cover letters, interview preparation, and gaining emotional clarity and confidence through AI interactions. Turnbull also mentioned that Microsoft employees use Copilot internally as a vital assistant, even though external sales have not met expectations.
Context of the Post
Microsoft’s leadership shared severance details and resources for laid-off workers. They provided typical outplacement services like career coaching, résumé workshops, and job-search platforms. However, Turnbull’s public support for AI tools introduced a fresh perspective. It emphasized the company’s push to widely adopt AI and highlighted the merging of productivity tools with mental health support.
Copilot’s Dual Role: Productivity and Well-Being
From Code Helper to “Therapeutic Bot”
Microsoft Copilot, using OpenAI’s GPT models, was introduced to boost productivity by auto-completing code, drafting emails, and summarizing documents. In May, Microsoft co-founder and CEO Mustafa Suleyman highlighted its ability to understand user comfort, diagnose problems, and offer solutions, making Copilot an emotionally aware tool for young, tech-savvy users.
AI’s role in mental health is under the microscope. Critics say AI eases stress by simplifying tasks but can’t replace professional therapy. The American Psychological Association advises regulators to watch AI chatbots for false therapeutic claims, warning that misuse might worsen anxiety or spread misinformation.
Internal Adoption and External Sales
Microsoft employees have widely adopted Copilot, making it essential. Yet, the company faces challenges expanding its success to enterprise clients. Concerns about data privacy, integration issues, and high licensing costs hinder broader adoption. Turnbull’s support shows internal excitement about Copilot’s capabilities, despite external sales falling short.
Reactions from Workers and Experts
Employee Sentiments
Laid-off workers have mixed feelings. Some see value in using an AI assistant for job applications and interview prep. Others feel it’s impersonal and reflects a corporate reliance on AI for human issues. An ex-Xbox engineer said, “It feels empty to talk to Copilot when I’m mourning my team.” They prefer human support. On the other hand, a former program manager is cautiously optimistic, saying, “If Copilot can help me organize my thoughts or draft a cover letter at 3 a.m., I’m willing to try it.
Mental-Health Professionals Weigh In
AI can support, but not replace, human care in mental health. Dr. Elaine Chen highlights that AI chatbots can help with tasks like journaling and role-play but lack the empathy and diagnostic skills of therapists. Relying solely on AI risks trivialising mental health. Dr. Patrick Morales warns about privacy issues, noting that interactions with AI, like Copilot, generate data. Without proper safeguards, personal reflections could be stored, analysed, and monetised.
The Broader Debate: AI, Automation, and Job Security
CEOs Embrace AI at Workers’ Expense
Tech leaders, including Microsoft, are using AI efficiencies to justify layoffs. Meta’s Zuckerberg and Klarna’s Siemiatkowski plan to replace jobs with AI. This trend challenges the employer-employee relationship: Should workers face job loss with only impersonal chatbot reassurances?
Regulatory and Ethical Considerations
Employers are increasingly using AI for productivity and employee support, prompting scrutiny from policymakers and watchdogs. The Federal Trade Commission is examining misleading mental-health claims by AI startups, while European regulators are creating AI safety frameworks with transparency rules for emotional-support features.
Labor advocates demand better severance protections, retraining programs, and restrictions on AI in workforce decisions. They assert that AI has valid uses, like data analysis and content creation, but it shouldn’t replace the human aspects of job loss.
What’s Next for Laid-Off Workers
Practical Uses of AI in Job Search
AI offers clear advantages for those facing unemployment. It can draft personalized résumés and cover letters using job descriptions, reducing time spent on revisions. Simulated interviews help candidates practice and improve communication. AI analyzes job postings to identify needed skills, directing workers to suitable training. Combining AI with traditional career services may lead to the best results.
Evolving Role of Employers
Companies must humanize layoffs. Experts advise offering more than AI tools, such as extended counseling, peer-support networks, and professional therapists. Transparent communication is crucial; leaders should provide honest, empathetic messages to reduce feelings of abandonment during restructuring. Establish clear AI ethics policies, detailing when and how AI chatbots can serve as emotional-support aids, with data-privacy safeguards and disclaimers about their limitations.
Conclusion
An Xbox executive suggests AI tools like Microsoft Copilot can help with the emotional impact of mass layoffs, highlighting the complex relationship between technology, mental health, and work. AI chatbots may streamline job searches and offer brief emotional support, but they can’t fully address the deep psychological effects of losing a job. As companies seek AI efficiencies, they must maintain a duty of care to employees, ensuring technology enhances rather than replaces human empathy and support. The future challenge is not just improving AI capabilities but also defining its ethical role in the changing workplace.
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