Microsoft second round of layoffs: From AI director to coders, who have been hit the hardest? Check details

Microsoft on Tuesday announced it is laying off 3% of employees across all levels, teams and geographies, affecting about 6,000 people. The tech giant employed 228,000 full-time workers as of last June, the last time it reported its annual headcount. About 55% of those workers were in the US.

“We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace,” a Microsoft spokesperson said in a statement.

The massive layoffs come at a time when Microsoft is investing heavily on artificial intelligence that is starting to automate aspects of software development. Microsoft CEO Satya Nadella revealed in April that AI now writes up to 30% of code in some Microsoft projects.

This is most likely Microsoft's largest round of layoffs since the elimination of 10,000 job roles in the year 2023. In January the company announced a small round of layoffs that were performance-based. These new job cuts are not related to performance, the spokesperson said.

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Who have been hit the hardest?

The recent layoffs by Microsoft has impacted software engineers the most and this is because wth over 40 percent of approximately 2,000 positions eliminated in Washington state belonging to coding professionals, according to documents reviewed by Bloomberg. Project management roles were notably affected, with product managers and technical program managers making up nearly 30% of the job cuts in Washington, according to Bloomberg.

While Microsoft described the layoffs as a move to "reduce management layers," Bloomberg's analysis reveals that only around 17% of the affected employees in Washington were classified as managers—a proportion similar to their presence in the company overall. The layoffs also included some AI project managers, according to a source familiar with the situation, while relatively few sales and marketing staff in customer-facing roles were impacted.

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Even AI director was not spared in Microsoft layoffs

Gabriela de Queiroz, Director of Artificial Intelligence for Microsoft for Startups, was among those affected in Microsoft's layoffs and shared the "bittersweet" news of her departure on social media. According to Queiroz, staff were asked to stop work immediately after being informed of the decision. She chose to stay on for a bit, attend meetings, and bid farewell to her colleagues, showing her commitment to her team and appreciation for her time at Microsoft.

"Bittersweet news to share: I was impacted by Microsoft's latest round of layoffs. Am I sad? Absolutely. I'm heartbroken to see so many talented people I've had the honour of working with being let go. These are people who cared deeply, went above and beyond, and truly made a difference," she wrote along with a picture of herself smiling.

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"I'm an optimist at heart. That hasn't changed. My smile, my gratitude, my belief that each day is a gift—that's all still here," she expressed.

She ended her post with a note for others impacted by the layoffs. "What's next? I don't know yet. It's too soon to say. But I trust that something good will come out of this. To those also affected—you're not alone. We are at least 6,000. And to those who've reached out, thank you. Your kindness means everything right now," she concluded the post.