Microsoft lays off more workers — but AI is the star now

In 2024, Microsoft had 228,000 employees. In 2025? A growing AI budget and a shrinking headcount. The machines are taking over… and they work weekends.

Microsoft has cut more jobs. Again.

Just a few weeks after laying off 6,000 workers in May, the company has let go of a few hundred more. Around 300 people lost their jobs on Monday, according to a government notice from Washington state.

These cuts hit many different roles, software engineers, marketers, lawyers, product managers, and researchers. No team seems safe.

Why all the layoffs? According to Microsoft, it’s to help the company “succeed in a changing market.” That’s a fancy way of saying: we’re changing how we work, and we need fewer people now.

The real reason? Two letters: A and I.

Microsoft, like other tech giants such as Meta and Salesforce, is pouring billions of dollars into artificial intelligence. They say AI can write code, build software, and help employees work faster. Even better (for the companies), AI doesn’t need a paycheck.

Salesforce said last week that it’s using AI so well, it doesn’t need to hire as many people. That probably sounded great in the boardroom. Less so if you’re someone looking for a job.

Microsoft’s own AI tools are doing more of the work that humans used to do. As a result, fewer humans are needed. Simple as that.

Now, let’s pause for a moment. Isn’t it strange that the people who helped build the AI are now the ones being let go because of AI? That’s like baking a cake and being told you’re not invited to the party.

Still, Wall Street seems happy. Microsoft’s stock price went up slightly after the news. Investors love anything that saves money, even if it means fewer jobs.

As of last year, Microsoft had about 228,000 full-time employees. That number is now shrinking, fast.

The tech world is clearly moving full-speed ahead with AI. But while the machines are taking on more tasks, real people are being left behind.

Let’s just hope the robots say “thank you” on their way in.

Fabrice Iranzi

Journalist and Project Leader at LionHerald, strong passion in tech and new ideas, serving Digital Company Builders in UK and beyond
E-mail: iranzi@lionherald.com

Leave a Reply

Your email address will not be published.