Microsoft has announced layoffs affecting around 3% of its workforce, translating to over 6,000 roles across various departments including LinkedIn and Xbox. The majority of the cuts occurred at their Redmond HQ, particularly impacting the software engineering sector, which saw the highest number of eliminations. This is the largest round of layoffs since last year's cuts of 10,000 jobs, shifting the focus towards organizational changes to adapt to a dynamic market. The integration of AI into coding processes was cited, with significant portions of code now being written by AI tools.
Microsoft has laid off about 3% of its workforce, impacting over 6,000 roles, primarily targeting managers across all levels, including LinkedIn and Xbox.
Among the layoffs, approximately one-third occurred at Microsoft's Redmond HQ, with software engineering roles experiencing the most significant cuts totaling 817.
This marks Microsoft's largest layoff since 2023 when it reduced 10,000 jobs and implemented salary freezes, which resumed in 2024 based on performance.
CEO Satya Nadella highlighted that AI is now responsible for writing 20% to 30% of code at Microsoft, changing the landscape for software engineering.
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