Microsoft has implemented another round of job cuts, eliminating more than 300 positions just weeks after announcing its largest workforce reduction in years.
The latest cuts affected 305 employees in Redmond, according to a filing with the Washington state Employment Security Department on Monday. This brings Microsoft’s total reported layoffs in its home state to nearly 2,300 in recent weeks.
A Microsoft spokesperson confirmed that these job eliminations are in addition to the workforce reduction announced last month, which affected nearly 3 per cent of the company’s global workforce, or approximately 6,000 employees.
“We continue to implement organisational changes necessary to best position the company for success in a dynamic marketplace,” the spokesperson said in an emailed statement.
The spokesperson noted that the latest round of cuts represent “significantly less” than 1 per cent of Microsoft’s total workforce. As of June 2024, the company employed about 228,000 full-time staff, with 55 per cent based in the United States.
The artificial intelligence boom has significantly impacted the technology labour market, as companies prioritise AI-focused roles whilst using the technology to reduce costs. Microsoft and competitors including Meta Platforms Inc. have promoted the effectiveness of AI-assisted coding tools in accelerating software development processes.
Last week, Salesforce Inc. reported that internal use of AI has enabled the company to hire fewer workers, demonstrating the broader industry trend of leveraging artificial intelligence for operational efficiency.
Microsoft’s previous layoffs primarily affected software engineers, though the company has not specified which roles were impacted in Monday’s cuts. The company has not explicitly stated whether AI efficiencies played a direct role in the latest workforce reduction.
However, Microsoft indicated that it generally seeks to help workers utilise new technologies to focus on the most meaningful and important tasks. The goal of the latest reductions, according to the company, is to move faster by cutting management layers whilst minimising overlapping jobs through streamlined processes and roles.
The company emphasised that it has regularly made staff changes in the past to align with business requirements, suggesting these cuts are part of ongoing operational adjustments rather than extraordinary measures.
