Microsoft Layoffs Hit Programmers as AI Code Generation Rises

Microsoft Layoffs Disproportionately Impact Coders

Recent workforce reductions at Microsoft, affecting approximately 2,000 employees in Washington state, have significantly impacted its coding staff, according to a report by Bloomberg.

State filings analyzed by Bloomberg reveal that software engineers comprised over 40% of those laid off. This represents the single largest category of positions eliminated.

Impact Across Departments

In contrast to the cuts in engineering, relatively few positions in sales and marketing were affected by this round of layoffs, as noted by Bloomberg.

While Microsoft does not publicly disclose the precise percentage of its workforce dedicated to coding, it is acknowledged that developers constitute a substantial portion of the company’s employees.

Broader Restructuring Efforts

These reductions are part of a larger restructuring initiative at Microsoft, resulting in the elimination of around 6,000 jobs company-wide.

AI's Growing Role in Software Development

The timing of these cuts is notable, occurring shortly after CEO Satya Nadella indicated that artificial intelligence now contributes to up to 30% of the company’s code generation.

AI is increasingly being utilized to assist in the software development process.

Microsoft's Response to Inquiries

TechCrunch inquired whether the rise of AI-assisted coding influenced the decision to implement these layoffs. However, Microsoft declined to provide a comment on this matter.

The company has previously stated that the layoffs are intended to streamline management structures and reduce hierarchical layers.

Layoffs are aimed at reducing management layers within the organization.