New Delhi— Microsoft has laid off hundreds more employees, just weeks after eliminating nearly 6,000 positions—about 3% of its global workforce—as the company continues to reorganize amid its accelerated push into artificial intelligence.
According to a filing with Washington State’s Employment Security Department, 305 additional employees based in Redmond, Washington, have been let go. A Microsoft spokesperson confirmed the new round of job cuts, noting that it is part of the broader restructuring efforts announced last month.
“We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace,” the spokesperson said.
Microsoft CEO Satya Nadella previously told employees that the layoffs were not performance-related but rather the result of shifting strategic priorities, especially the company’s expanding focus on AI. Speaking during a recent town-hall meeting, Nadella acknowledged the emotional toll of the decision but emphasized it was driven by long-term business realignment, not a reflection of employee productivity or capability.
The layoffs come as Microsoft deepens its investment in AI tools and platforms. During the Microsoft Build 2025 event, Frank X. Shaw, Chief Communications Officer, declared that “we’ve entered the era of AI agents.” He highlighted how advancements in memory and reasoning are making AI models more efficient and practical for real-world applications.
“Fifteen million developers are now using GitHub Copilot, and new features like agent mode and code review are revolutionizing how they code, test, deploy, and debug,” Shaw noted.
Microsoft’s enterprise-grade AI tools have also seen widespread adoption. Over 230,000 organizations—including 90% of Fortune 500 companies—are using Copilot Studio to build custom AI agents and automations. Meanwhile, hundreds of thousands of users rely on Microsoft 365 Copilot for research, brainstorming, and productivity tasks.
While the company is experiencing growth in AI integration, the restructuring underscores the disruptive impact of technological transformation on traditional roles, as Microsoft continues to evolve for the future of work. (Source: IANS)
