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Microsoft's Latest Layoffs Hit Software Engineers Hard

  • Microsoft announced global layoffs of around 6,000 employees, mostly U.S.-based software engineers, on May 13, 2025, affecting its Redmond headquarters and New Delhi offices.
  • The layoffs stem from a strategic shift to streamline operations, reduce management layers, and prioritize AI-driven products amid industry-wide tech restructurings by rivals like Google and Meta.
  • Software engineers lost over 40% of cut jobs in Washington state, including prominent Python and TypeScript developers, while sales and marketing roles remained mostly untouched.
  • CEO Satya Nadella noted that up to 30% of Microsoft's code is now written by AI, and severance packages of about 16 weeks were offered, though Microsoft denied layoffs were solely due to AI automation.
  • The layoffs imply a continued reallocation of resources toward AI, with experts warning that other regions like India may also face further cuts as Microsoft pursues more agile, lower-layered teams.
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itweb.co.za broke the news in on Thursday, May 15, 2025.
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