Microsoft has announced another round of job cuts, impacting hundreds of employees, just weeks after a previous reduction of approximately 6,000 positions. The latest cuts, disclosed in a filing with the Washington state Employment Security Department on June 2, 2025, involve 305 employees in Redmond, Washington. This brings the total reported layoffs in its home state to nearly 2,300 in recent weeks.
A Microsoft spokesperson confirmed that these new cuts are in addition to the 6,000 layoffs announced last month, which equated to roughly 3% of the company's global workforce. The company stated that these organizational changes are necessary "to best position the company for success in a dynamic marketplace." The latest round of cuts represents "significantly less" than 1% of Microsoft's total workforce.
While Microsoft has not directly attributed the layoffs to AI efficiencies, the company has stated that it is generally seeking to help workers utilize new technologies to focus on the most meaningful and important tasks. CEO Satya Nadella mentioned at LlamaCon 2025 in April that up to 30% of Microsoft's code is now AI-generated. This drive towards AI integration has led to speculation that AI is playing a role in the company's workforce restructuring.
Data from the Washington state Employment Security Department reveals that software engineering roles were among the hardest hit, comprising about 22% of the impacted employees in the recent Redmond layoffs, which translates to 67 workers. Other disciplines significantly affected include product management (39 employees), technical program management (35), product marketing (30), business program management (22), and legal counsel (22). These cuts impacted a mix of individual contributors and management levels, with "IC4" roles, or mid-level individual contributors, being the most affected.
These layoffs occur amidst a broader trend of job cuts in the technology industry during 2025. Companies like Google, Meta, Intel, Salesforce, LinkedIn, Amazon, Disney and HP have also announced significant workforce reductions. Experts suggest that economic uncertainty, high interest rates, and inflationary pressures are compelling tech companies to prioritize profitability and streamline operations.
Microsoft isn't alone in citing organizational restructuring as a reason for the layoffs. Other tech giants, including Amazon, have also signaled a move to reduce management layers in an effort to increase agility and efficiency. Microsoft's CFO, Amy Hood, stated on an April earnings call that the company is focused "on building high-performing teams and increasing our agility by reducing layers with fewer managers."
The layoffs have sparked concerns about the impact of AI on the tech job market. As companies invest heavily in AI and develop AI-assisted tools, some fear that traditional tech roles, especially entry-level positions, may be at risk. However, some analysts suggest that while AI may automate certain tasks, it will also create new opportunities and require humans to focus on higher-level strategic initiatives. The situation remains dynamic, and the long-term impact of AI on the tech workforce is still unfolding.
