Microsoft Cuts 300 More Jobs Amid Largest Layoff Wave in Recent Years
Microsoft has initiated another round of job cuts, eliminating over 300 positions on Monday, June 2, according to a report by Bloomberg. This move adds to what has become the company’s largest wave of layoffs in recent years, with more than 6,000 employees already laid off since May 2025.
While prior layoffs heavily impacted software engineering roles, Microsoft has not disclosed which departments were affected in this most recent round.
“We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace,” a Microsoft spokesperson said, as quoted by Bloomberg.
As of June 2024, Microsoft employed approximately 228,000 full-time workers, with 55% based in the United States.
Shifting Priorities: AI and Data Centers
The layoffs are part of a broader shift in strategy across Big Tech, with companies like Microsoft and Meta reallocating resources toward AI development and data center infrastructure, while scaling back on other business segments.
One major driver behind this workforce reduction is the increasing efficiency of AI coding tools. These tools are now capable of automating significant portions of software development, directly impacting traditional engineering roles.
Microsoft CEO Satya Nadella, speaking at Meta’s LlamaCon conference last month, revealed that AI now writes 20–30% of code for company projects. He praised AI’s performance in Python programming, though acknowledged its limitations in languages like C++.
“AI is generating fantastic Python code,” Nadella said, “though it’s not that great with C++ yet.”
He also highlighted the company’s growing reliance on advanced AI agents—autonomous programs that can execute complex development tasks without human oversight.
Broader Tech Industry Trend
Microsoft is not alone in this shift. Google CEO Sundar Pichai, during an earnings call in May, stated that AI is responsible for over 30% of new code written at Google, up from 25% in October 2024. He noted that developers are increasingly embracing AI-generated code and hinted at further integration in the near future.
“It’s still early days,” Pichai said. “There’s going to be a lot more to do.”
These developments underscore how AI-driven automation is reshaping the future of work in tech—fueling concerns over job security even as companies tout gains in productivity and efficiency.
