AI Advice for Laid-Off Workers Sparks Controversy After Microsoft’s 9,000 Job Cuts
PLUS: Samsung Electronics Faces 39% Profit Decline in Q2 2025 Due to Sluggish AI Chip Demand
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AI Advice for Laid-Off Workers Sparks Controversy After Microsoft’s 9,000 Job Cuts
Following Microsoft’s announcement of 9,000 layoffs across its workforce, including significant cuts in its Xbox gaming division, Executive Producer Matt Turnbull suggested that affected employees turn to AI tools like ChatGPT and Microsoft’s Copilot for “emotional clarity and confidence.” In a now-deleted LinkedIn post, Turnbull proposed that AI could help former employees process the emotional toll of job loss, craft resumes, and plan their careers, offering prompts like, “I’m struggling with imposter syndrome after being laid off. Can you help me reframe this experience?”
The suggestion, intended as support, was met with widespread backlash from developers and online communities, who called it tone-deaf, especially given Microsoft’s $80 billion investment in AI infrastructure, which some see as a driver of the layoffs. The gaming community expressed outrage, with one developer, Eric Smith from ZeniMax Online, commenting, “Jesus Christ, read the room dude.” Turnbull’s post was removed after the criticism, but screenshots shared on platforms like Bluesky amplified the controversy, with many labeling it insensitive amid studio closures and project cancellations, including Perfect Dark and Everwild.
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Samsung Electronics Faces 39% Profit Decline in Q2 2025 Due to Sluggish AI Chip Demand
Samsung Electronics is projected to report a 39% drop in second-quarter profit for 2025, driven by weaker-than-expected sales of AI-related chips, according to industry analysts. The South Korean tech giant, a leading supplier of memory chips for AI applications, has been grappling with soft demand for its high-bandwidth memory (HBM) chips, critical for AI model training, as competitors like SK Hynix and Micron gain market share.
The estimated operating profit for the April-June period is expected to be around 6.2 trillion won ($4.5 billion), down from 10.1 trillion won a year earlier. This decline reflects pricing pressures and an oversupply in the semiconductor market, despite Samsung’s efforts to ramp up production of advanced HBM3 chips for AI workloads. The company’s struggles come amid broader challenges in the global chip industry, with investors closely watching Samsung’s upcoming earnings report for signs of recovery in the AI sector.
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Other Top AI News Today
European Commission Delays AI Act "Code of Practice" Release: The European Commission has postponed its "Code of Practice" for the AI Act, originally set for early 2025, to the end of the year. This guide aims to help businesses comply with the AI Act, with main deadlines unchanged: general-purpose AI rules start in August 2025, and high-risk AI rules in August 2026. The delay offers companies more preparation time but keeps regulatory pressure on.
European Media Outlets Sue Google Over AI Overviews: Independent European media outlets are suing Google, claiming its AI-generated "AI Overviews" reduce traffic to original news sites. Since May 2024, zero-click searches have reportedly increased from 56% to 69%, impacting publishers' revenue. The lawsuit alleges Google misuses publisher content for AI training without consent, raising concerns about competition and press access.
Apple’s iPhone 17 Series to Feature Advanced AI: Rumors suggest Apple’s upcoming iPhone 17 series, expected in 2025, will include a 6.9-inch Super Retina XDR OLED display, A19 Pro chip, and advanced AI features. These enhancements, alongside 8K video and 50W wireless charging, signal Apple’s push to integrate cutting-edge AI into consumer devices, potentially reshaping mobile experiences.
Microsoft’s MAI-DxO Outperforms Physicians in Diagnostics: Microsoft’s MAI-DxO AI model has achieved an 85.5% accuracy rate in diagnosing complex medical cases from the New England Journal of Medicine, surpassing human physicians. This milestone highlights AI’s growing role in healthcare, potentially transforming diagnostic accuracy and efficiency.
Premier League and Microsoft Partner for AI-Driven Fan Engagement: The Premier League and Microsoft announced a five-year partnership to leverage AI and cloud technologies for personalized fan experiences and enhanced football operations. This includes a new AI assistant and upgraded match experiences, aiming to revolutionize global fan engagement.
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Business Tip of the Day
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