“Speak softly and carry a big prompt.”

That’s not exactly how Theodore Roosevelt put it, but presidential historian Doris Kearns Goodwin found herself face to face with an AI-powered version of the 26th president at the newly opened Theodore Roosevelt Presidential Library in Medora, N.D. — and she had questions.

Goodwin is among the high-profile visitors to interact with the lifelike, immersive version of Roosevelt that is able to discuss his life, leadership and legacy.

A week after a visit from President Trump, Goodwin joined Microsoft President Brad Smith at the library to learn how the tech giant’s AI is being used to help the institution — and the Roosevelt avatar — speak directly to future generations.

“Who better to put our avatar to the test than American historian Doris Kearns Goodwin,” Smith wrote on LinkedIn on Sunday, where he shared a video of a clearly giddy Goodwin meeting the digital Roosevelt.

“I’ve been wanting to meet you for such a long time,” Goodwin said. “I feel like I’ve lived with you for 10 years of my life when I wrote a first book about you.”

Goodwin asked Roosevelt questions about his relationship with JP Morgan, the changing will of the country, and how it was presumed that when he neared death, Roosevelt would still be fighting and still be in the arena.

“I never cared how’d I’d be remembered by the historians,” the avatar said. “Still swinging, still loud, still on your feet. If folks say I managed that, well, I’m glad of it.”

A Pulitzer Prize-winning biographer who has written extensively about presidents and American history, Goodwin was moved by the interaction.

“Wow,” she said. “It’s amazing.”

The AI works as part of Box 1, the knowledge base backbone of the museum, powered by technology Microsoft helped create. According to a July 1 Microsoft blog post, the system is loaded with hundreds of thousands of archival documents, and AI is used to “organize, enrich and reconstruct fragmented materials into searchable, contextualized historical records.”

Box 1 and AI also power The Campfire Reading Room, a digital research tool that anyone anywhere in the world can use to search through Roosevelt’s writings, letters, images and historical materials.

Microsoft donated much of its work with the library through its AI for Good Lab. The company said it plans to release a paper documenting exactly how the technology works and to open source the software used in the project.

As technology evolves, the library will evolve with it, Microsoft said. When more documents are added to Box 1 or as generative AI improves, the Roosevelt avatar will automatically update with the additional context.

“That’s why we call it a living library,” said Laura Hoffman, senior director of the AI for Good Lab. “One of the most challenging things for cultural institutions is to continue to keep their experiences feeling relevant and fresh. This is what’s great about AI technology: It will continue to get better and better.”

Microsoft is cutting 4,800 jobs, just over 2% of its global workforce, citing a need to revamp its sales and consulting division to keep pace with a rapidly changing tech industry, while overhauling its Xbox business in a push for long-term growth and profitability from gaming. 

The cuts include about 600 jobs in Washington state, home to Microsoft’s Redmond headquarters. That’s down from 3,200 job reductions locally a year ago. Combined with ongoing hiring, Microsoft’s workforce in the state is expected to remain stable at around 52,000 people.

About 1,600 of the 4,800 job cuts being announced Monday are in the Xbox division. Additional Xbox layoffs in the months ahead are expected to bring total job reductions in the gaming division to roughly 3,200, or about 20% of the global Xbox workforce, this fiscal year. 

Microsoft is also spinning off four Xbox game studios to operate independently. 

In an internal memo, Xbox CEO Asha Sharma called it the biggest restructuring in Xbox history, saying the division has been “operating at margins that are 3-10x lower than comparable platform and publishing businesses” and that studios have been losing 64 cents for every dollar invested.

Overall, top executives sought to distinguish Microsoft from other tech giants, saying the cuts were minimized by the redeployment of more than 4,000 employees into new roles over the past year and a voluntary retirement program that let thousands more exit by their own choice.

By comparison, the company last year cut more than 15,000 jobs globally in two rounds of layoffs in spring and summer 2025 — the largest reductions in more than a decade.

The latest cuts come amid record capital spending on the company’s AI infrastructure, pressure from Wall Street to keep operating expenses in check, and a 30% stock slide that has wiped out roughly $1.2 trillion in Microsoft’s market value over the past nine months.

“Microsoft can only be a strong employer if it has a successful business,” said Brad Smith, its president and vice chair, in an interview with GeekWire. “We have to adapt to change.”

Before the latest cuts, the company’s total workforce was about 220,000 people. Across the company, Microsoft expects worldwide headcount to decline year-over-year, CFO Amy Hood said on an April earnings call. 

Amy Coleman, Microsoft’s chief people officer, said in a memo to employees Monday morning that the roles the company is eliminating today are not being directly replaced by AI.

At the same time, she acknowledged, “AI is changing how work gets done.” She added, “Some of the tasks we do every day can now be automated, and that means we all need to keep learning, keep building new skills, and keep adapting as the work evolves.”

However, the line from Coleman’s memo that may get the most attention internally is this: “We are still early on this journey, and there will be more changes ahead; other parts of our business will need to make similar changes.”

In an interview, Coleman stopped short of signaling further layoffs across the company. Instead, she described a larger shift in how Microsoft manages its workforce. That includes reskilling engineers for customer-facing and AI-focused positions, and exploring how to make voluntary exit programs a regular part of the company’s operations — not just a one-time offer, but potentially something employees could opt into annually or on an ongoing basis.

Coleman confirmed that about 30% of roughly 8,750 eligible U.S. employees accepted Microsoft’s first-ever voluntary retirement program in recent weeks, in line with the company’s expectations, which reduced the size of the reduction in force announced Monday. 

The cutbacks and changes in the company’s sales and consulting teams build on last week’s launch of the Microsoft Frontier Company, a $2.5 billion initiative to embed 6,000 engineers inside customers to deploy AI. The shift is reducing some traditional sales and consulting roles and resulting in more technical positions working directly with customers. 

“We’re seeing that we need more engineering excellence in the customer space,” she said. 

Smith said software development is undergoing its biggest shift in the more than 50 years since Microsoft’s founding. The widespread use of AI is making code cheaper and faster to produce, but he said that’s also creating demand for new kinds of roles and work.

“Some things like coding require less time of software developers,” he said. “At the same time, there’s new parts that are growing, whether it’s the product management or software design, or perhaps most importantly, working directly with customers.”

Update: A filing by Microsoft on Monday under the Washington state Worker Adjustment and Retraining Notification Act listed 605 positions being eliminated in Washington state.

The roles span software engineering, product management, sales strategy, data science, business program management, marketing, and game design, among others — ranging from mid-level individual contributors to senior managers, consistent with cuts that reach across both the company’s technical ranks and its sales and consulting operations.

As the country marks its 250th birthday this week, Microsoft is rolling out an unlikely summer project: a six-part series of short videos, hosted by Microsoft President and Vice Chair Brad Smith, that look to American history for lessons relevant to technology and innovation today.

The premise is that every technology debate of the moment — over such issues as patents, privacy, and who gets to shape AI — has a precedent somewhere in the country’s past, and that we’d all benefit from remembering how we got here in the first place.

“We felt that the 250th anniversary of the country deserved some added reflection about the lessons of history, the role of technology, and the questions that we’re facing as a country,” explained Smith, a well-known history buff, in an interview with GeekWire this week.

In the first episode, for example, he stands in Philadelphia’s Independence Square to explain how a steamboat demonstration on the Delaware River in 1787 helped inspire the Constitutional Convention to give Congress the power to grant patents. This was the basis for the intellectual property framework that Smith describes as a bedrock of American innovation.

Savvy viewers may see some irony in a company extolling the virtues of IP protections even as Microsoft and OpenAI defend themselves against a New York Times copyright suit over the material used to train their AI models.

Asked about that, Smith made it clear he doesn’t see a contradiction.

“Every generation of technology has required a new round of legal thinking, legislation and oftentimes lawsuits, so that courts can sustain the balance that has always been needed between new innovation and the protection of things created already,” he said.

He also noted that Microsoft is often the party going to court to protect customers, pointing as one example to the company’s move this week to intervene before Europe’s top court in defense of the European Union and U.S. data-protection framework.

The six-part series was overseen by Smith’s longtime chief of staff, Carol Ann Browne, a Microsoft vice president; and produced by Kirkland, Wash.-based Trifilm. The episodes, around 3 or 4 minutes each, will roll out in the coming weeks. Smith said they recorded during existing travel plans, working the shoots into stops on trips he was already taking.

The series travels next to a Boston courtroom for the birth of privacy rights, Henry Ford’s Detroit assembly line for the spread of new technology, Cincinnati for Tocqueville’s take on nonprofits, Great Falls, Md., for George Washington’s early infrastructure ambitions, and the Lewis and Clark expedition in Montana for the value of uniting competing viewpoints.

“The 250th anniversary of the country is quite rightly an occasion to honor the past, celebrate the past,” Smith said, explaining the motivation for the series. “But let’s make sure we get something out of the past that helps us be more successful in the future.”

Gov. Bob Ferguson last week recruited top executives from Microsoft, Amazon, T-Mobile, Boeing and other major employers to help shape Washington state’s economic strategy, launching a new advisory council as concerns mount that the state is becoming less competitive for business.

The 26-member Governor’s Economic Development Council is the first such governor-led economic advisory body in roughly two decades, reviving an approach last used under former Gov. Christine Gregoire in 2006. The group includes leaders from technology, aerospace, organized labor, higher education, tribal governments, ports and economic development organizations who will advise the governor on policies aimed at strengthening Washington’s economy. (See full list below).

One missing ingredient: No members from Washington’s venture capital or startup ecosystem are on the council, even though they are often considered the bench strength of a growing economy.

The announcement comes as executives, startup founders and business organizations have increasingly warned that higher taxes, rising costs, permitting delays and an uncertain regulatory environment are making Washington a more difficult place to build and grow companies. Ferguson recently signed the so-called “millionaires tax” — a proposed 9.9% tax applied to taxable, personal annual income that exceeds $1 million.

Some of the region’s wealthiest and most prominent entrepreneurs — including Zillow and Expedia co-founder Rich Barton; Amazon founder Jeff Bezos and former Starbucks CEO Howard Schultz — have publicly announced moves out of Washington state in recent years.

Starbucks also recently announced a major expansion in Nashville, and Montana Gov. Greg Gianforte of earlier this month announced that Sedro Wooley, Wash.-based Janicki Industries chose Great Falls for the site of an $800 million manufacturing center expected to create 1,000 jobs.

“Washington is our home, and that is not changing,” said John Janicki, president of Janicki Industries, in a press release. “Our footprint in Washington has continued to grow but is slowing due to ever-increasing regulations and lack of business understanding at an executive and legislative level.” 

Meanwhile, a recent survey from the Association of Washington Business found that 24% of businesses are considering a relocation out of the state, up from 17 percent in the prior quarter.

Washington’s economic climate was also one of the reasons why GeekWire recently traveled to Cleveland, where we explored how the Midwestern city was positioning itself for a changing economy, and the lessons that Washington could learn from it.

“We cannot take our strength for granted,” Ferguson said in announcing the council. “I’m launching a historic convening of top leaders from around Washington state to help guide the next chapter of economic prosperity for our state.”

The council will help develop Washington’s long-term economic strategy, identify opportunities to create family-wage jobs, evaluate the state’s competitiveness against other states and global markets, recommend ways to attract new employers and review regulatory barriers that may be slowing economic growth. The group will meet quarterly and submit recommendations to the governor.

The council’s creation comes after months of growing unease within Washington’s technology and business community.

GeekWire has reported extensively on criticism surrounding this year’s tax package, which raised business taxes on many employers and expanded the sales tax to additional services, including advertising. Business groups warned the measures could discourage investment and expansion in Washington, while lawmakers argued the revenue was necessary to close a multibillion-dollar budget gap and preserve essential public services.

The broader economic backdrop remains mixed. Washington continues to rank among the nation’s strongest state economies and remains home to global leaders in artificial intelligence, cloud computing, aerospace and life sciences. At the same time, employers are navigating higher borrowing costs, federal policy uncertainty, trade tensions and intensifying competition from states aggressively courting new investment.

As one example, Ohio Gov. Mike DeWine recently encouraged people and businesses from places like Washington to consider Ohio.

“Come work in Ohio,” DeWine noted after a question from GeekWire about advice he’d provide to Washington. “You will not find a better place, better people, quality of life. Cost of living is low compared to the two coasts.”

In the press release announcing Janicki Industries’ Montana expansion, Gianforte was a bit more blunt.

“The Treasure State is proud to attract job creators like Janicki that choose to expand from high-tax, high-regulation blue states to take advantage of our unmatched quality of life, lower taxes, and strong workforce,” he said. “I look forward to seeing the impact of this significant investment.”

Ferguson has sought to make economic development a central priority during his first year in office. His administration has highlighted efforts to speed permitting across state agencies, increase housing production and invest in sectors including quantum computing, advanced manufacturing and clean energy.

However, some have argued that the governor’s efforts come a bit too late, and are only be instituted in response to criticism. Gov. Ferguson shot back at that contention in the press conference last week, saying he doesn’t worry about critics and he’s interested in “solving problems.”

“I didn’t wake up last week and think about forming this council,” he said. “To be clear, as I mentioned in my talking points, this was an effort we really started last year and was an outgrowth of having conversations with many of the folks behind me and many other people across the state.”

Whether the new council ultimately leads to meaningful policy changes remains to be seen. But its creation sends a signal that Ferguson intends to place economic competitiveness — and closer engagement with Washington’s business community — near the center of his administration.

Amazon Chief Global Affairs and Legal Officer David Zapolsky, a member of the newly created council, called the formation of the group an “important step.”

“When the public and private sectors align around shared goals, communities benefit,” he said.

Governor’s Economic Development Council members:

• Michael Cade — Incoming Board Chair, Washington Economic Development Association; Executive Director, Thurston County Economic Development Council
• Dr. Betsy Cantwell — President, Washington State University
• Leonard Forsman — Chairman, Suquamish Tribe
• Denny Heck — Washington State Lieutenant Governor
• Kris Johnson — President, Association of Washington Business
• Trevor Johnson — CEO, Blackwood Homes
• Dr. Robert Jones — President, University of Washington
• Mike Katz — Chief Business & Product Officer, T-Mobile
• Mary Kipp — President & CEO, Puget Sound Energy
• Heather Kurtenbach — Executive Secretary, Washington State Building & Construction Trades Council
• Dr. Thomas J. Lynch Jr. — President & Director, Fred Hutchinson Cancer Center
• Julianna Marler — CEO, Port of Vancouver
• West Mathison — President & CEO, Stemilt Growers
• Stephen Metruck — Executive Director, Port of Seattle
• Denise Moriguchi — President & CEO, Uwajimaya
• Stephanie Pope — President & CEO, Boeing Commercial Airplanes
• Heather Rosentrater — President & CEO, Avista
• Michael Senske — Chairman & CEO, Pearson Packaging Systems
• April Sims — President, Washington State Labor Council, AFL-CIO
• Brad Smith — Vice Chair and President, Microsoft
• Rachel Smith — President, Washington Roundtable
• Bill Sterud — Chairman, Puyallup Tribe
• Shane Tackett — President and Chief Financial Officer, Alaska Airlines
• Monique Valenzuela — Executive Director, Ventures
• Dr. Rebekah Woods — President, Columbia Basin College
• David Zapolsky — Chief Global Affairs & Legal Officer, Amazon