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Microsoft Lays Off 300+ Staff Amid AI Restructuring

Microsoft Lays Off 300+ Staff Amid AI Restructuring

Microsoft has laid off over 300 employees in a new round of job cuts this week, marking another major workforce reduction just weeks after the company slashed 6,000 roles. The move, reported by Bloomberg, is part of Microsoft’s ongoing operational restructuring as the company intensifies its focus on artificial intelligence (AI) and automation technologies.

According to a regulatory filing reviewed by Bloomberg, the layoffs were disclosed in a notice to the Washington state government. While Microsoft has not officially confirmed the specific departments or roles impacted, previous rounds of layoffs have primarily affected software engineers and product development teams.

A Microsoft spokesperson addressed the restructuring efforts, saying, “We continue to implement organisational changes necessary to best position the company for success in a dynamic marketplace.” The statement reflects a broader trend sweeping across the tech sector, where companies are reevaluating traditional job roles in the face of AI disruption.

This is the second major workforce shake-up for Microsoft in recent months. In May 2025, the company announced a 6,000-employee layoff its largest reduction in years highlighting how dramatically the landscape is shifting due to the adoption of generative AI and intelligent automation tools.

Microsoft, alongside other tech giants like Meta and Salesforce, is leading the charge in integrating AI tools into core operations. Its AI Copilots, which assist in code writing, business automation, and data analysis, have already been rolled out across various departments. These tools not only improve efficiency but also reduce the need for expansive human teams, especially in technical and engineering roles.

Salesforce echoed similar sentiments earlier this year, noting that internal AI deployment has allowed the company to scale up without proportional increases in hiring. Microsoft’s adoption of similar strategies signals a recalibration of workforce priorities, favoring innovation and leaner operations powered by AI.

As of June 2024, Microsoft employed approximately 228,000 full-time staff worldwide, with over half based in the United States. With this latest move, the company continues to send a clear message: in the era of intelligent automation, traditional job roles particularly in engineering and development are being reevaluated or phased out. For employees and industry watchers alike, the trend reflects a sobering reality. As AI technologies evolve at an unprecedented pace, tech companies are rapidly adapting often at the expense of conventional job structures.

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