(Bloomberg) – Recently announced job cuts from Microsoft Corp. were the most difficult for people who build the products of the company, showing that even software developers are in danger in the era of artificial intelligence.
Most of Bloomberg
In the original state of Microsoft, Washington, software engineering was by far the largest unique work category to receive dismissal notices, representing more than 40% of approximately 2,000 positions, according to state documents examined by Bloomberg.
Microsoft said on Tuesday that it would reduce around 6,000 workers across the company. Washington state data represent approximately a third of the total.
As Microsoft and its competitors make strong investments in AI, they examine costs and identify budgets. In recent weeks, Microsoft’s leaders have committed to keeping a lid in expenditure in the middle of huge investments in the construction of the data center.
At the same time, the tools fueled by AI capable of writing or analyzing the automatic code of the software development elements previously carried out by engineers typing on keyboards. At Microsoft, up to 30% of the code of certain projects is now written by AI, said CEO Satya Nadella in April.
Plus: how the AI changes American jobs, from nurses to nurses
Several technological companies reshape their workforce because they focus on AI. Earlier this year, Salesforce Inc. planned to reduce more than 1,000 employees because he hired for sales roles focused on AI, especially in sales. CEO Marc Benioff also said that the company would hire engineers in 2025 due to the use of AI. When Workday Inc. announced a layoff in February, CEO Carl Eschenbach said that hiring would continue in strategic fields such as AI.
Beyond software engineers, many of Microsoft’s hardest staff have launched software projects. The roles of product management and technical management of programs have represented nearly 600 of Washington discounts, or around 30% of the total.
The job cuts have also targeted certain managers and workers assigned to AI projects, according to a person familiar with the cuts.
Relatively few customer -oriented roles, such as sales or marketing, have been affected, according to data. Microsoft refused to comment.
Microsoft said the layoffs have been designed to remove management layers. But it is not clear how much delay takes place really. About 17% of those chopped in Washington were classified as managers. The company used approximately the same percentage of managers throughout its operation at the end of 2023, according to a report of the workforce tabled with the American Commission for employment opportunities.