(Bloomberg) – Microsoft’s recent layoffs have been the hardest to reduce the number of people building company products, suggesting that even software developers are at risk in the age of artificial intelligence.
Software Engineering is by far the largest single job category in Microsoft’s home state of Washington, Washington, according to state documents reviewed by Bloomberg, software engineering is by far the largest single job category to be announced, accounting for more than 40% of the roughly 2,000 jobs layoffs.
Microsoft said Tuesday it would reduce the company by about 6,000 workers. Washington state accounts for about one-third of the total.
As Microsoft and its competitors make substantial investments in AI, they are reviewing costs and re-establishing their budget. In recent weeks, Microsoft executives have pledged to keep their caps in a lot of investments in data center building.
Meanwhile, AI-driven tools that can write or analyze code are automating software development elements that were previously completed by engineers entering on the keyboard. CEO Satya Nadella said in April that at Microsoft, up to 30% of certain project codes are written by AI.
More: How AI changes jobs in the United States, from teachers to nurses
Several tech companies are reshaping their workforce while focusing on AI. Earlier this year, Salesforce Inc. planned to reduce its employees by more than 1,000 as it focuses on AI-focused sales positions, especially in terms of sales. CEO Marc Benioff also said the company will reduce the recruitment of engineers in 2025 due to the use of AI. When Workday Inc. announced layoffs in February, CEO Carl Eschenbach said the recruitment would continue to be in strategic areas such as AI.
Apart from software engineers, many of the hardest-hit Microsoft workers ran software projects. The roles of product management and technology program management together constitute nearly 600 of the number of totals in Washington, accounting for about 30%.
According to people familiar with the matter, the cuts are also targeted at some managers and workers assigned to AI projects.
Data shows that relatively few customer-oriented roles, such as sales or marketing, are affected. Microsoft declined to comment.
Microsoft said the layoffs were intended to remove management. But it is not clear how much delay actually occurred. In Washington, about 17% are classified as managers. The percentage of the company employed the entire manager by the end of 2023, according to a workforce report filed with the Equal Employment Opportunity Commission.
– Assistance with Daniela Sirtori.
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