Microsoft has initiated another round of job cuts, laying off over 300 employees this week as part of its ongoing efforts to streamline operations and adapt to rapid changes in the tech landscape, reported Bloomberg.

The layoffs come just weeks after the company executed its biggest workforce reduction in recent years, signalling a deeper shift across the industry as artificial intelligence takes centre stage.

According to a notice filed in Washington state and reviewed by Bloomberg, the latest cuts affected several hundred roles. While the company did not specify which departments were impacted, the move adds to the 6,000 layoffs Microsoft announced last month.

“We continue to implement organisational changes necessary to best position the company for success in a dynamic marketplace,” a Microsoft spokesperson said, framing the decision as part of a broader recalibration in response to evolving business priorities.

The tech sector is in the throes of an AI-driven transformation, with major players like Microsoft, Meta, and Salesforce reshaping workforce strategies to align with machine learning and automation trends. At the heart of this shift is a growing reliance on AI-powered tools — including those that assist in software development — which are helping firms cut costs and reduce dependency on large engineering teams.

Salesforce, for instance, recently stated that its internal use of AI has allowed it to scale operations with fewer new hires. Microsoft has made similar moves, showcasing its own AI copilots that accelerate coding and other technical processes.

While the company hasn’t revealed which roles were axed in this latest round, past layoffs have disproportionately affected software engineers. Microsoft employed roughly 228,000 full-time workers as of June 2024, with more than half of them based in the United States.

The message from Microsoft and its peers is becoming increasingly clear: in the era of artificial intelligence, companies are moving quickly to rebalance headcounts and focus resources on where they believe future growth will come from — and that often means fewer traditional roles and more tech driven by machines.

Source: India Today