Microsoft has implemented another round of layoffs, eliminating over 300 positions just weeks after announcing its largest workforce reduction in several years, highlighting the ongoing trend within the tech sector to cut costs while investing heavily in artificial intelligence.
The job cuts were communicated to affected employees on Monday, according to a notice from Washington state that was reviewed by Bloomberg.
A spokesperson for Microsoft confirmed that these layoffs are in addition to the 6,000 job reductions made public last month. “We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace,” the spokesperson stated.
The surge in artificial intelligence has significantly impacted the technology employment landscape, with firms prioritizing AI-centric roles and leveraging the technology to increase efficiency and reduce costs.
Microsoft, along with other major players like Meta Platforms, has highlighted the advantages of AI tools in accelerating software development. Recently, Salesforce reported that its use of AI has enabled it to decrease hiring needs.
Previous layoffs at Microsoft predominantly affected software engineers, though the specific positions impacted by the latest cuts have yet to be identified. As of June 2024, Microsoft’s workforce stood at approximately 228,000 employees, with 55 percent based in the United States.
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