Microsoft Cuts Over 300 More Jobs Amid Continued AI-Focused Restructuring
Microsoft Cuts Over 300 More Jobs Amid Continued AI-Focused Restructuring
New layoffs follow last month’s 6,000-job reduction as Microsoft shifts strategy to strengthen AI infrastructure
Microsoft has eliminated more than 300 additional jobs this week, adding to the tech giant’s sweeping workforce reductions as it continues a strategic realignment toward artificial intelligence development. The latest layoffs were revealed through a Washington state regulatory filing reviewed by Bloomberg and follow the 6,000 job cuts the company announced just weeks earlier.
While Microsoft has not disclosed the specific roles affected in this latest round, industry observers suggest that software engineers and project managers, already heavily impacted in the prior cuts are likely to be among those affected again.
These job reductions mark Microsoft’s second-largest wave of layoffs since 2023, when the company eliminated 10,000 positions globally. CEO Satya Nadella recently described the restructuring not as a performance-based decision, but as a necessary “realignment” to better position the company for future demands, particularly in the AI sector. “This was not about people failing,” Nadella emphasized during an internal town hall meeting. “It was about repositioning for what comes next.”
A Microsoft spokesperson confirmed that the new layoffs are in addition to last month’s workforce reduction. “We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace,” the statement read.
Microsoft is among several major tech firms aggressively investing in AI capabilities. The company has committed billions toward AI infrastructure while also highlighting the role of AI-powered tools in streamlining software development. Tools like AI-assisted coding have been praised by Microsoft and peers such as Meta Platforms and Salesforce, with the latter recently noting that AI efficiencies are enabling them to reduce hiring needs.
As of June 2024, Microsoft employed around 228,000 full-time workers, with approximately 55% based in the United States. The continued reshuffling suggests a broader trend in the tech industry, where AI integration is not only reshaping product strategies but also redefining workforce requirements.
