Microsoft Cuts More Jobs Following Last Month's 6,000 Employees Layoff

Microsoft has executed another round of job cuts, laying off more than 300 employees just weeks after announcing its largest layoff in years. The decision highlights how tech giants are restructuring to stay competitive while continuing to invest billions into artificial intelligence. According to a Bloomberg report, the affected employees were informed of their job loss on Monday. This reduction adds to the 6,000 jobs the company eliminated in the previous month.

AI Drives Cost Efficiency Across the Tech Industry

The surge in AI adoption has had a significant impact on the tech labour market. Companies are prioritising roles aligned with artificial intelligence while using the technology itself to optimise operations and cut costs. Microsoft and firms like Meta Platforms have promoted the effectiveness of AI-assisted coding tools, which accelerate the software development process and reduce dependency on large engineering teams.

Salesforce, another tech leader, stated last week that its internal use of AI has allowed it to hire fewer workers. These shifts underscore how AI is not only creating new roles but also making certain functions leaner.

Microsoft’s Workforce in Flux

While Microsoft’s previous layoffs mainly affected software engineers, it is unclear which roles were impacted in the latest round. The company’s global workforce stood at around 228,000 full-time employees as of June 2024, with 55% based in the United States.

This restructuring marks a significant shift in how Microsoft and the wider tech sector is adapting to rapid technological change and evolving market demands. The company is rebalancing its workforce to align with its AI-first strategy.

Read More: 2025 Mass Tech Layoffs: Intel, Meta, Google Among Firms Cutting 50,000+ Jobs!

Conclusion

Microsoft’s continued job cuts reflect a broader transformation in the tech industry, where AI investment is taking centre stage. As businesses shift priorities to embrace automation and efficiency, workforce structures are evolving to support this new technological era.

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