Microsoft is letting go of around 6,000 employees globally, with reports indicating that software developers and engineers have been the hardest hit. The layoffs form around 3 per cent of the company’s global workforce, and much of the impact has been felt at its Washington headquarters.
AI replaces coders: Microsoft lays off thousands in tech reshuffle
According to reports, over 40 per cent of the 2,000 layoffs in the U.S. are from the engineering division—people responsible for developing some of Microsoft’s most widely used consumer products.
AI writes code while coders get Pink Slips: Irony!
This development comes soon after CEO Satya Nadella announced that 30 per cent of Microsoft’s code is now written by AI. The same AI, it seems, is now taking over the jobs of the very people who trained and integrated it into the workflow. What was once seen as a futuristic possibility is now unfolding in real time.
Layoffs branded as ‘Good attrition’
Initial speculation suggested the layoffs were targeted toward underperformers and middle management. However, a Bloomberg report reveals that skilled coders—far from being redundant—are among the primary victims. Microsoft has reportedly offered those affected a performance improvement plan (PIP) or a 16-week severance package.
The company maintains that the layoffs are part of “organisational changes necessary to best position the company for success in a dynamic marketplace.”
Sales and marketing least affected
Interestingly, while tech teams are facing the brunt, sales and marketing roles remain mostly untouched, suggesting a reallocation of resources toward areas with immediate revenue potential. Microsoft’s current strategy reflects an industry-wide shift in priorities as companies double down on AI development.
India may be next as global shake-up continues
While most of the initial layoffs have been U.S.-centric, experts warn that regions like India may also be impacted soon. With Microsoft shifting its focus towards AI-driven products and services, traditional developer roles may increasingly come under threat.
A growing trend in big tech
Microsoft is not alone. Google, Amazon, and Meta have also recently initiated similar cuts, all under the pretext of streamlining operations to focus on AI innovation. With profits still uncertain and AI racing ahead, it seems inevitable that more tech roles will be re-evaluated in the coming months.