Around 2,000 software developers hit by Microsoft latest layoffs: Report

Tech giant Microsoft's latest layoffs have affected a chunk of its software engineering unit, as the company increasingly doubles down on artificial intelligence (AI).

According to the latest filings, Microsoft cut roughly 2,000 roles in Washington state alone, with over 40% involving software developers, reported Bloomberg. 

It added that other roles, such as product and technical program managers, accounted for another 30% of the cuts. These figures account for the 6,000 personnel cuts Microsoft announced earlier this week.

As of June 2024, the company employed 228,000 people worldwide.

Among those affected was Gabriela de Queiroz, Director of AI at Microsoft. In a LinkedIn post, she said, "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—whether it’s helping Microsoft become a trusted name among AI startups or driving initiatives to make it a better place to work for hundreds of people—none of that makes you immune to restructuring."

The layoffs come as Microsoft and other tech giants, including Salesforce and Workday, restructure teams to focus more heavily on AI. While these companies continue hiring for AI-related roles, they’re also tightening overall budgets and reducing headcount in traditional software roles.

Some of Microsoft’s AI project staff were also affected, sources told Bloomberg, though customer-facing roles like sales and marketing saw relatively few reductions.

Earlier this year, Amazon cited the need to eliminate “unnecessary layers” within its structure, while cybersecurity firm CrowdStrike recently announced a 5% reduction in its workforce. 

Despite the layoffs, Microsoft reported better-than-expected financial results for the quarter, posting a net income of $25.8 billion and revenues of $70.07 billion. The company is also ramping up its AI investments, with CEO Satya Nadella stating that Microsoft will spend $80 billion on AI initiatives this year.