Microsoft Corporation (NASDAQ:MSFT) is among the many large technology companies that have announced job cuts in 2025.
The company is utilizing the power of artificial intelligence, growth that could make many jobs obsolete in the future.
What Happened: Microsoft has announced another round of layoffs, with several company units seeing the impact of less human workers needed due to company proficiencies made with the power of artificial intelligence.
Among those that were let go in the latest round of layoffs was Microsoft Director of AI Gabriela de Queiroz, a move that might prove no one is safe from the impact of AI in the workplace.
“Am I sad? Absolutely. I’m heartbroken to see so many talented people I’ve had the honor of working with being let go. These are people who cared deeply, went above and beyond, and truly made a difference,” Queiroz said in a tweet.
Queiroz said she and others were asked to “stop work immediately,” but she chose to stay longer to wrap up what she could and say goodbye.
“That felt right to me.”
The job cuts follow a new report that AI handles up to 30% of Microsoft’s coding tasks. A Bloomberg report said Microsoft’s software engineers were hardest hit in the latest round of layoffs from the company’s Washington home base.
Here were the job cut estimates from Bloomberg:
- Software engineering: 817
- Product management: 373
- Technical program management: 218
- Business program management: 55
- Customer experience program management: 44
- Product design: 31
In Washington, software engineer roles made up over 40% of the 2,000 positions cut, as reported by Bloomberg.
Why It’s Important: The latest job cuts could be made for numerous reasons, including cost savings, getting rid of highly paid employees, or, as the International Business Times reports, helping streamline operations with fewer middle management roles.
The timing of the layoffs coming after Microsoft CEO Satya Nadella saying 30% of the company’s code was now being written by AI likely won’t sit well with those scared of jobs being replaced by AI.
Microsoft declined to comment to TechCrunch when asked if the layoffs were motivated by the rise of AI-assisted coding.
Microsoft said it would cut 6,000 workers in the latest round of job cuts, which follows other technology companies eliminating roles.
“We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace,” Microsoft said.
The latest round of job cuts follows other layoff moves earlier this year, including those for the company’s Xbox division, HoloLens, and Azure cloud computing units.
The moves come as Microsoft stock is nearing its all-time highs, levels hit back in July 2024.
Microsoft’s job cuts and potential improving margins and profitability along with growth from AI and cloud could continue to make the stock attractive in the short and long term for investors.
MSFT Price Action: Microsoft stock is up 0.6% to $456.87 on Monday versus a 52-week trading range of $344.79 to $468.35. Microsoft stock is up 9.1% year-to-date in 2025.
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