Microsoft lays off 300 more workers, follows 6,000 job cuts last month

Microsoft has laid off more than 300 employees in an additional round of job cuts, following a series of major workforce reductions in recent months. The latest layoffs were disclosed through a Worker Adjustment and Retraining Notification (WARN) filing in Washington state and come on the heels of the company's decision to eliminate 6,000 roles last month.

The technology company has not specified which roles or departments were affected in the newest round. However, previous layoffs have predominantly impacted software engineering and project management positions, suggesting a similar pattern may have continued.

The ongoing job cuts are part of Microsoft's broader restructuring efforts as the company doubles down on artificial intelligence. CEO Satya Nadella previously characterised the layoffs as a "realignment" during an internal town hall, stating that they were not performance-related but rather a strategic shift to support the company’s AI transformation.

Microsoft has invested heavily in AI infrastructure, with roughly $80 billion allocated for data centre expansion in the current fiscal year. Nadella recently stated that AI now contributes to up to 30% of code written in some company projects.

Industry-wide, major tech firms are following a similar trend. Companies such as Salesforce, Amazon, and Google have also introduced flatter organisational structures and are reducing traditional engineering and management hires in favour of AI-driven efficiency.

As of June 2024, Microsoft employed approximately 228,000 full-time workers globally, with 55% based in the United States. The company has also implemented new performance management measures, including a two-year rehire ban for those exiting due to performance issues and voluntary exit packages offering up to 16 weeks of severance.

The recent wave of layoffs marks the second-largest workforce reduction at Microsoft since 2023, when the company cut 10,000 jobs during a similar restructuring phase.