Microsoft Lays Off 2,000 Employees in AI Push, Software Engineers Among Most Affected
New Delhi, May 14 (TheTrendingPeople.com) — Global tech leader Microsoft has laid off around 2,000 employees in Washington state, as part of a broader restructuring move aimed at strengthening its focus on artificial intelligence (AI). The layoffs are part of the 6,000 job cuts the company announced earlier this week.
According to reports by Bloomberg, software engineers were the most impacted, accounting for more than 40% of the layoffs. In addition, product managers and technical program managers made up another 30% of the affected workforce. The layoffs come as Microsoft is shifting resources from traditional software roles to AI-centric positions.
AI Talent Hired, Traditional Roles Trimmed
While the company is laying off staff in several departments, it is continuing to hire aggressively for AI-related jobs. Microsoft, along with other tech companies like Salesforce and Workday, is restructuring teams to align with the increasing demand for AI-powered technologies.
Some workers from Microsoft’s AI departments have also been impacted by the layoffs, sources told Bloomberg. However, customer-facing roles like sales and marketing reportedly saw fewer job cuts.
High-Level Exit: Director of AI Among Those Laid Off
Among the high-profile employees affected by the job cuts is Gabriela de Queiroz, Director of AI at Microsoft. In a candid LinkedIn post, she reflected on her unexpected exit:
“Was I expecting it? Maybe. These days, no matter how hard you work, how much you advocate for your company, or how much results and visibility you bring… none of that makes you immune to restructuring,” she wrote.
Queiroz had played a key role in making Microsoft more accessible to AI startups and in building workplace culture. Her departure highlights how even top performers are not immune to job cuts during company-wide changes.
Industry-Wide Trend: AI Reshaping Tech Jobs
Microsoft is not the only company making changes. Other tech firms are also streamlining their operations while investing more in AI. Earlier this year, Amazon eliminated layers in its structure to reduce complexity, and CrowdStrike, a cybersecurity company, announced a 5% workforce reduction.
These moves signal a growing trend where traditional tech roles are being reduced, even as AI teams grow. Companies are cutting costs in some areas while putting more money into AI research, development, and deployment.
Microsoft Reports Strong Profits Despite Job Cuts
Despite the layoffs, Microsoft continues to perform well financially. The company recently posted better-than-expected quarterly results, reporting:
- Net income: $25.8 billion
- Revenue: $70.07 billion
These numbers show that Microsoft remains profitable and competitive, even during restructuring. The company is also making significant investments to maintain its leadership in the AI space.
Microsoft CEO Satya Nadella announced that the company will spend $80 billion on AI initiatives this year, underlining the seriousness of its long-term strategy.
A Workforce in Transition
As of June 2024, Microsoft employed 228,000 people globally. With the tech landscape rapidly changing, many companies, including Microsoft, are reshaping their teams to match evolving business goals. This includes shifting focus away from traditional software development and putting more effort into emerging technologies like AI and machine learning.
While these changes open doors for new roles and skills, they also create uncertainty for many tech professionals. The recent layoffs are a clear example of how the industry is moving toward a new era, where adaptability and expertise in future technologies will matter more than ever.
Key Takeaways:
- Microsoft laid off 2,000 employees in Washington state, part of a 6,000-role reduction globally.
- Software engineers, product managers, and technical program managers were most affected.
- The layoffs are part of a broader shift toward artificial intelligence investments.
- High-profile employees, including Microsoft’s Director of AI, were among those laid off.
- Microsoft continues to hire for AI roles, while trimming headcount in traditional tech areas.
- Despite the cuts, the company reported strong profits and record-breaking revenue.
- Microsoft plans to invest $80 billion in AI this year, showing a clear strategic direction.
As Microsoft continues to bet big on artificial intelligence, the tech giant is entering a new phase of transformation and disruption. While the company is investing in the future, thousands of workers are facing the reality of job loss today. The evolving tech landscape suggests that upskilling in AI and related fields is no longer optional—it’s essential for those wanting to stay relevant in the workforce.
