CHENNAI: Microsoft has carried out another round of layoffs, cutting over 300 jobs on Tuesday, just weeks after announcing a significant workforce reduction of 6,000 positions. The latest cuts are reportedly aimed at encouraging adaptation to emerging AI-driven tools and methodologies across the industry.
The layoffs have sparked controversy and public concern, particularly following a viral Reddit post by the wife of a long-time Microsoft employee who was among those terminated. The post describes how her husband, a 25-year veteran of the company, was dismissed via an automated notice from Washington state—an account that was reviewed and reported by Bloomberg.
While Microsoft has not disclosed which specific roles were affected in this round, earlier layoffs primarily targeted coders and managers. These ongoing workforce reductions are part of Microsoft’s broader restructuring strategy, which aligns with its substantial investments in artificial intelligence infrastructure. The company aims to reallocate resources to support growth in AI technologies.
During a recent Town Hall event, Microsoft CEO Satya Nadella addressed the decision to lay off 6,000 employees—about 3% of the company’s workforce. Nadella emphasized that the layoffs were part of organizational restructuring and not reflective of employee performance. The cuts notably affected roles in product development, underlining that even engineering positions are not immune to the shifts brought on by the rise of artificial intelligence.
This announcement comes alongside strategic changes such as Microsoft’s growing partnerships in the AI space, including a notable collaboration with Barclays and other institutions—indicating a broader transformation within the company.
In response to concerns about the future of coding careers, Microsoft’s Chief Product Officer sought to reassure employees, especially software developers. He stated that while AI is reshaping the software development landscape and putting pressure on both technical and managerial roles, coding remains a vital and valued skill. Nonetheless, the layoffs have drawn criticism for their impersonal execution and have reignited debates over the role of automation in employment decisions.
These developments reflect broader shifts in strategic focus among major tech companies and changing dynamics in the consumer electronics market. Another US tech giant, IBM, also announced a major round of layoffs in May.