Microsoft Cuts Over 2,000 Jobs, Engineers Hit Hardest
Microsoft lays off over 2,000 employees in Washington, with engineers and project managers hardest hit as AI reshapes software development roles.
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Microsoft’s latest wave of job cuts has significantly affected software engineers and project management professionals, particularly in Washington state, as the tech firm accelerates its AI-driven transformation.
Out of approximately 2,000 positions eliminated in Washington, more than 40 per cent were held by software engineers, internal data reviewed by Bloomberg revealed. Project and product management roles accounted for nearly 30 per cent of the state’s cuts, including technical program managers.
The Washington layoffs represent about one-third of the 6,000 jobs slashed globally, which make up less than 3 per cent of Microsoft's 228,000-strong workforce. Microsoft confirmed the reductions on Tuesday but did not provide a detailed job role breakdown.
The workforce restructuring reflects Microsoft's broader focus on artificial intelligence, a priority area where the company has been heavily investing. CEO Satya Nadella said in April that AI now contributes up to 30 per cent of code in some internal software projects, as automation becomes increasingly integrated into development processes.
“As part of our ongoing strategy, we are making adjustments to align operations with market demands,” a Microsoft spokesperson said in a statement. The company is simultaneously cutting costs while allocating around $80 billion this fiscal year to expand its AI and data center infrastructure.
Despite public framing of the layoffs as an attempt to flatten organizational structures, only 17 per cent of those affected in Washington were identified as managers—roughly in line with management’s proportion within the company's total workforce, Bloomberg noted. Some project managers tied to AI teams were included in the cuts, though few client-facing roles in sales and marketing were impacted.
Microsoft’s approach mirrors broader industry trends. Salesforce has announced plans to reduce future hiring for engineering roles due to AI efficiencies, while Workday will prioritize hiring in AI-related areas despite reducing other roles earlier this year.
The company declined to comment on how job reductions were distributed across departments.
