Microsoft announced a new wave of layoffs on Tuesday as part of an internal restructuring process driven by the company’s growing reliance on artificial intelligence and automation. Although the company did not disclose the exact number of job cuts, U.S. media outlets report that approximately 6,000 employees will be laid off—roughly 3% of its global workforce.

In its home state of Washington, Microsoft filed a notice with the state’s Employment Security Department indicating that 1,985 jobs would be cut.

“We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace,” a Microsoft spokesperson said in an emailed statement. The company added that it aims to eliminate unnecessary layers of management and empower employees to focus on more meaningful work by leveraging new technologies.

AI Reshaping the Workforce

The layoffs come at a time when Microsoft is rapidly integrating AI capabilities across all its products, from Office tools to its Azure cloud platform. In its latest quarterly earnings, Microsoft reported strong growth fueled largely by its cloud computing and AI services.

Now in its 50th year, Microsoft has been one of the fastest and boldest adopters of AI since the 2022 launch of ChatGPT shook the tech world. The company has since invested heavily in OpenAI and reshaped its business strategy around AI-driven innovation.

But that transformation comes with a labor cost: like many tech giants, Microsoft is restructuring teams to align with the efficiencies brought by automation. While AI boosts productivity and reduces operational costs, it also renders certain roles—especially administrative and repetitive tasks—less necessary.

A Broader Trend in the Tech Industry

Microsoft is not alone. Other major tech companies including Google, Meta, Amazon, and Salesforce have also announced job cuts this year, often citing similar reasons: internal restructuring, increased operational efficiency, and the adoption of new technologies.

Even amid strong financial performance, these layoffs reflect a shift in how big tech companies view their workforce needs in the age of AI. Human talent remains vital—but the demand is increasingly for technical, adaptable employees who can help develop and implement AI-powered tools.

What’s Next for Affected Workers?

So far, Microsoft has not specified which departments or global regions will be most impacted, aside from the filing in Washington state. It also hasn’t shared whether support or redeployment programs will be available for those affected.

What’s clear is that as Microsoft marks its 50th anniversary, its vision for the future is defined by a powerful message: less hierarchy, more automation, and a new definition of work in the age of artificial intelligence.

With information from AFP