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Dear Readers,
Microsoft's drastic cuts mark a turning point. 9,000 jobs are being cut – not because of the crisis, but because of transformation. While traditional sales and management jobs are being eliminated, AI-related roles such as “solution engineers” are on the rise. The subtext is clear: those who do not integrate themselves into the AI world will be displaced by it. What was long considered a vision of the future is now becoming reality – quietly but unmistakably.
What Microsoft is doing here could soon be a blueprint for the entire tech industry. It's no longer just about efficiency or tools, but about structures. Companies are reorganizing around generative AI – work models, qualifications, and entire career paths are being reevaluated. This affects not only tech employees, but everyone who works in knowledge-based professions.
We are on the threshold of a labor market in which “artificial intelligence” is no longer a tool – but a colleague, competitor, and decision-maker. This development requires new ways of thinking: How do we restructure? Who bears social responsibility? And how do we ensure autonomy in an automated world?
In Today’s Issue:
Microsoft is firing 9,000 people to go all-in on AI
Ilya Sutskever's message to the industry: We have the team, the compute, and we're not selling
Tencent's new open-source model uses a "Mixture of Experts" for maximum efficiency
Meta researchers think they've found a more powerful way for AI to "pay attention”
And more AI goodness…
All the best,
Microsoft lays off 9,000 employees
The TLDR
Microsoft is laying off approximately 9,000 employees, or 4% of its workforce, in a major strategic shift towards artificial intelligence. The cuts primarily target traditional sales and management roles, which are being replaced by more technical "solutions engineers" as the company invests billions in AI infrastructure and reorganizes its teams to be leaner and more AI-focused.
Microsoft is making a historic break: around 9,000 jobs – just under 4% of its global workforce – are being cut as the company massively expands its investment in AI infrastructure and continues its transformation. Sales and management levels are particularly affected, with technically skilled “solutions engineers” replacing them – a clear indication that AI is not only taking over tools, but entire job profiles.
This combination of job cuts and realignment shows that the era in which AI replaces rather than complements jobs has arrived. Microsoft is bundling its forces to scale cloud services, Copilot integrations, and generative AI solutions more strongly – and expects traditional roles to be increasingly supported or taken over by AI.
For the AI community, this is a wake-up call: new opportunities are emerging for developers and AI architects, but at the same time, pressure on traditional jobs is increasing significantly. Microsoft's move is not only strategic, but also symbolic – it marks a turning point in the world of work.
Why it matters: This turning point makes it clear that AI is not just replacing technology, but is profoundly changing job profiles and corporate structures. At the same time, it shows how urgently we need new models of training, responsibility, and social security.
Sources:
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In The News
I sent the following message to our team and investors:
—As you know, Daniel Gross’s time with us has been winding down, and as of June 29 he is officially no longer a part of SSI. We are grateful for his early contributions to the company and wish him well in his next
— #Ilya Sutskever (#@ilyasut)
3:58 PM • Jul 3, 2025
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Graph of the Day
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Question of the Day
Are you worried that AI could take your job?
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