Microsoft Cuts 300 More Jobs Amid AI Investment

Microsoft has announced another round of layoffs, this time affecting over 300 employees. This comes just weeks after the company's largest-ever layoff of 6,000 employees, highlighting the tech industry's ongoing efforts to cut costs while investing heavily in artificial intelligence.

According to internal communications seen by the media, more than 300 employees were notified on Monday that their positions had been eliminated. A Microsoft spokesperson confirmed that this latest round of layoffs follows the previously announced reduction of 6,000 jobs last month. The spokesperson stated, "We will continue to implement necessary organizational adjustments to position the company for success in a dynamic market."

The tech industry is experiencing significant disruption due to the AI boom, with many companies prioritizing AI-focused roles and using the technology to reduce costs. Microsoft and Meta Platforms, among others, have praised the effectiveness of AI-assisted coding tools in accelerating software development. Last week, Salesforce announced that it is using AI to reduce hiring needs internally.

Microsoft's previous layoffs have had a significant impact on software engineers, although it is unclear which roles were affected in the latest round. As of June 2024, the company employs approximately 228,000 full-time workers, with 55% based in the United States.