Microsoft announced yesterday (Wednesday, July 2) that it will lay off around 9,000 employees — the company’s largest round of job cuts since 2023.
Although Microsoft has not directly linked the layoffs to replacing workers with artificial intelligence, the timing and focus of the move suggest a shift toward a leaner and more automated organization.
CEO Satya Nadella recently said that about 30 percent of the company’s code is now written by AI tools.
The layoffs come as tech companies continue cutting staff even while their financial performance strengthens.
Microsoft said the decision aims to reduce management layers and simplify products, processes, and roles.
In 2025 alone, more than 15,000 Microsoft employees have been laid off.
