Microsoft Cuts 6,000 Jobs, With Software Engineers Most Affected Due to AI Shift

Microsoft has announced the layoff of around 6,000 employees, with software developers being the most affected group. Approximately 40% of the 2,000 job cuts in Washington state involved software engineering roles, based on state records. These layoffs come amid the company’s broader efforts to cut costs while investing heavily in artificial intelligence (AI) infrastructure, including new data centers. CEO Satya Nadella stated that up to 30% of code in some projects is now written by AI tools, reducing the need for traditional software development roles. Other affected positions included product managers and technical program managers, comprising roughly 30% of the Washington layoffs. Some of the layoffs also hit teams involved in AI projects, despite the company’s strategic focus on the technology. Notably, fewer customer-facing roles such as sales or marketing were affected. Microsoft has described the layoffs as part of a delayering strategy, though data shows only a modest reduction in managerial roles. The move reflects a broader trend in the tech industry, with companies like Salesforce and Workday also reducing engineering staff while reallocating resources toward AI-focused initiatives.