Microsoft has laid off some other three hundred personnel, just weeks after slashing 6,000 roles in one of its largest bodies of workers—discounts in years.

The cutting-edge task cuts, disclosed through a Washington nation word, come amid the organization's continued restructuring push and massive funding—a predicted $eighty billion—in synthetic intelligence (AI) infrastructure this financial 12 months.

Is AI the wrongdoer?

While microsoft has no longer specified which departments have been impacted, in advance, layoffs primarily affected software program engineers and venture managers, raising crimson flags across the tech industry.

CEO satya Nadella clarified that those have not been primarily performance-based cuts, but as a substitute, a "redata-alignment" to put together AI-led priorities.

"This becomes now not about human beings failing. It became approximately repositioning for what comes next," Nadella stated at some stage in an inner-city corridor.

As microsoft, at the side of peers like Google, Amazon, Intel, Meta, and Apple, leans heavily into AI, the challenge is growing that traditional tech roles—specifically in software program development and middle control—are being removed or essentially changed.

"The query isn't if AI will take your job..." This sentiment was echoed on linkedin by Rachit M., an AI platform builder, who asked, "The question is not whether or not AI will take your job. The query is, How will your function transform as AI becomes included in your industry?"

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Linkedin Reactions mirror enterprise tension.

Ravi Raushan, SDE at Amazon, "Layoffs have ended up being very not unusual. It is no longer even overall performance-primarily based anymore—all and sundry can get laid off any day."

Chaitanya Sharma, tech government, "Efficiency without empathy feels like price range cuts in a blazer. Excel can calculate savings; now, believe it."

Priyanshi Goyal, wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW">digital advertising strategist, said, "Those layoffs reflect a broader industry trend, wherein adaptability, continuous upskilling, and AI fluency are no longer non-obligatory."

0 Headcount boom in three years

Adding to the concerns, Deedy Das, VC at Menlo Ventures, pointed out a troubling fact: "Big Tech jobs have 0 growth inside the final three years. Google, microsoft, Apple, Tesla, Meta, Nvidia, and Palantir have together stagnated headcount."

He attributes the stagnation in massive tech hiring to several key factors. Overhiring at some point of the low-hobby-rate boom of 2020-2022, a slowdown in customer software program boom post-pandemic, growing hobby rates forcing cfos to prioritize fee-cutting and margin development, large capital spending on AI infrastructure and chips, and growing productivity from AI, which has decreased the need for huge teams.

"Does microsoft have 400k vs 200k humans, actually 2x the commercial enterprise? Maybe or maybe not now," Das delivered. "Execs may recognize, Howdy, I can hold growing without hiring'—and say, 'I use AI.'"

Das also stated that Microsoft's headcount grew ~10% annually from 2012 to 2022 but has now remained flat for three years, data-aligning with the post-pandemic AI surge.

IT Layoffs and Hiring Slowdown in india and Globally

So far in 2025, over 62,000 tech personnel at 137 businesses were laid off, consistent with Layoffs. FYI.

Microsoft is on my own bills for greater than 6,300 of these job losses.

In india, according to the Naukri jobspeak file for 2025, hiring in the IT software program/software program services sector noticed a year-on-year decline of 5%. The whole activity index for the sector stood at 3,457 in May 2025, compared to 3,630 in May 2024.

During the last 12 months, the arena has shown fluctuations, with peaks in July 2024 (3,713) and february 2025 (3,711), but general hiring remained subdued.

This displays ongoing caution within the tech industry, probably because of restructuring, AI-led modifications, and a shift in hiring priorities.

The company has discovered that AI now writes up to 30% of code in certain projects—a performance benefit that comes at the cost of many coding jobs. microsoft has additionally flattened organizational layers and quietly shifted hiring cognizance to AI-data-aligned roles.