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Microsoft cuts hundreds more jobs after firing 6,000 last month

The AI boom has roiled the tech labour market, as companies prioritise AI-focused jobs and harness the technology to save money

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Microsoft has cut more jobs as it invests heavily into AI development. Photo: EPA-EFE
Microsoft cut hundreds more jobs just weeks after its largest lay-off in years, underscoring the tech industry’s efforts to trim costs even as it ploughs billions of dollars into artificial intelligence (AI).

More than 300 employees were told their positions had been eliminated on Monday, according to a Washington state notice reviewed by Bloomberg.

A Microsoft representative said the latest headcount reduction was in addition to the 6,000 job cuts announced last month. “We continue to implement organisational changes necessary to best position the company for success in a dynamic marketplace,” the person said.

The artificial intelligence boom has roiled the tech labour market because companies are prioritising AI-focused jobs and harnessing the technology to save money.

Microsoft and peers including Meta Platforms have touted the effectiveness of AI-assisted coding tools in speeding up the software development process. Last week, Salesforce said the internal use of AI allowed it to hire fewer workers.

Microsoft’s previous lay-offs fell hardest on software engineers. It could not be determined what kind of jobs were affected on Monday. As of June 2024, the company had about 228,000 full-time employees, 55 per cent of whom were employed in the US.

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