July 07, 2025
Microsoft to Slash 9,000 More Jobs as AI Reshapes Tech Industry
Microsoft is preparing to eliminate an additional 9,000 jobs globally as part of a broader effort to modernise operations and scale its AI capabilities. This latest round of redundancies follows an initial layoff of roughly 6,000 employees earlier this year, largely targeting software engineering roles. Together, the cuts represent a significant pivot in Microsoft’s workforce strategy as it doubles down on automation and AI-driven efficiencies.
Back in May, the tech giant had indicated that between 3% and 4% of its workforce—approximately 230,000 employees worldwide—would be affected by restructuring efforts. With about 5,300 of those staff based in the UK, the impact is expected to be felt across a wide range of teams, including those in sales and the company’s flagship Xbox gaming division.
In a statement, a Microsoft spokesperson said the company is continuing to make “organisational changes necessary to best position the company and teams for success in a dynamic marketplace.” The aim, according to the company, is to leverage new technologies that free up employee time for more meaningful and high-impact work, while simultaneously simplifying internal structures and workflows.
These job cuts also serve as a signal of how AI-powered tools, such as those capable of writing code, are beginning to replace traditional developer roles. Microsoft CEO Satya Nadella recently remarked that up to 30% of the code in some internal projects is now generated by AI systems, emphasising a future where software development may require fewer human hands.
A New Beginning for Many
Microsoft is not alone in this transition. Several other major tech companies have also implemented sweeping workforce reductions. Meta, the parent company of Facebook and Instagram, recently announced it would let go of 5% of its lowest-performing staff, amounting to around 3,600 jobs.
Meanwhile, Google’s parent company, Alphabet, has trimmed hundreds of roles, and Amazon has scaled back operations in both its book and device divisions.
In a broader context, the rise of generative AI tools, like ChatGPT, has coincided with a noticeable decline in entry-level job postings. A recent report by recruitment analyst Adzuna highlighted a sharp drop in junior roles since late 2022, suggesting that automation is already reshaping the early-career job market.
