Microsoft announces hundreds more layoffs amid AI-focused restructuring

Microsoft has laid off over 300 additional employees this week, just weeks after unveiling its largest round of job cuts in years. A move that highlights the tech sector’s ongoing effort to rein in costs while accelerating investment in artificial intelligence.

The latest cuts were disclosed in a notice filed with Washington state authorities and confirmed by Microsoft, which stated these layoffs are separate from the 6,000 jobs eliminated last month. “We continue to implement organisational changes necessary to best position the company for success in a dynamic marketplace,” a Microsoft spokesperson said.

The tech industry is undergoing rapid transformation as companies redirect resources toward AI-driven roles and use automation to streamline workflows. Major players like Microsoft and Meta have promoted the effectiveness of AI-powered coding tools, which help accelerate development and reduce the need for larger software teams. Salesforce, too, noted that increased AI adoption internally has enabled the company to hire fewer staff.

While Microsoft’s previous round of layoffs mainly impacted software engineers, the company has not specified which roles were affected in this latest wave. As of June 2024, Microsoft employed about 228,000 full-time staff globally, with roughly 55% based in the United States.

As artificial intelligence becomes a central pillar of strategy across the industry, companies are making tough decisions about where to invest and where to cut back, reshaping the technology labour market for years to come.