Mass Layoffs Attributed to AI Adoption
Microsoft laid off around 6,000 workers, equivalent to 3% of the company's worldwide employees. The layoffs form part of the company's move to expand the adoption of artificial intelligence in operations.
Software Engineers Hit Hardest
International media reported that most of the impacted employees were software engineers. In Microsoft's Washington office alone, nearly 40% of the laid-off workers were in engineering positions. These workers were previously instructed by management to create AI tools for wider use.
AI Tools Replace Employee Roles
Once they had created AI chatbots, numerous engineers found their jobs taken over by the very same machines. Last year, CEO Jeff Hulse urged his 400-employee team to have OpenAI chatbots write half of their coding assignments. That was among the groups recently let go.
Other Roles Also Affected
The firings also touched off against junior developers, product managers, technical program managers, and team members for AI projects. Gabriela DeQueiroz, Microsoft Startups' Director of AI, was also fired. She called the experience "bittersweet" and expressed sympathy for the diligent workers who were let go.
Context of Previous Layoffs
This layoff comes on the heels of Microsoft's previous action in 2023 when 10,000 employees lost their jobs. It is the second-largest wave of job cutbacks for the company in recent history.
Company Statement Regarding Layoffs
The layoffs were justifiable for the purpose of organizational enhancement, a Microsoft spokesperson said. The company wants to simplify management and become more operationally efficient to remain competitive.
CEO Comments on AI Adoption
Last month, CEO Satya Nadella stated that AI tools now help automate around 30% of the company's coding. He emphasized the increasing use of AI to enhance code quality. The announcement of layoffs followed just after his statement.
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