Microsoft Lays Off 300 Employees as Part of AI-Driven Restructuring, Reports ET CIO SEA

Microsoft recently laid off over 300 employees in Washington state as part of ongoing workforce restructuring, following a significant job cut of 6,000 roles in May. The latest reductions, effective June 2, aim to align the company’s operations with a rapidly evolving market. A spokesperson stated these changes were necessary for Microsoft to thrive in a dynamic industry. Although specific roles impacted were not disclosed, previous layoffs largely affected software engineering positions. This trend mirrors a broader shift in the tech sector, where firms like Meta and Salesforce are also reducing headcount, despite substantial investments in artificial intelligence (AI). AI tools are being leveraged to enhance productivity and minimize hiring needs, with Salesforce noting that internal AI tools have enabled them to limit new hires. As of June 2024, Microsoft employed about 228,000 staff, with 55% located in the United States, reflecting the ongoing transformation of workforce composition driven by AI.

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