AI Layoffs: Microsoft’s Human Cost Unveiled

By Elke Porter | WBN Ai | July 1, 2025\
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💔 Microsoft announces another major round of layoffs of high-quality tech jobs.

Microsoft’s latest wave of layoffs has sent shockwaves through the tech industry, with 6,000 employees—about 3% of its global workforce—losing their jobs in May and June 2025. The cuts, which targeted software engineers, product managers, technical program managers, product marketers, and even legal staff, underscore a stark reality: the AI revolution is not just creating new opportunities, but also displacing thousands of highly skilled workers.

For many, the layoffs were abrupt. Employees were told to stop work immediately, set out-of-office notifications, and attend last-minute meetings where their terminations were confirmed. Even senior leaders and AI experts were not immune. Gabriela de Queiroz, Director of AI for Microsoft for Startups, shared her experience publicly, expressing gratitude for her journey but heartbreak over the sudden loss of so many talented colleagues. “These are people who cared deeply, went above and beyond, and truly made a difference,” she wrote, adding, “To those also affected—you’re not alone. We are at least 6,000”.

Freddy Kristiansen, a 59-year-old Principal Product Manager in Denmark, found himself returning to the office after being laid off following a 23-year career. “I still feel committed to the products, the people using them, and my colleagues,” he said, reflecting the deep ties and sense of purpose many employees feel, even after their roles are eliminated.

The driving force behind these layoffs is Microsoft’s aggressive pivot to AI. CEO Satya Nadella revealed that up to 30% of Microsoft’s code is now AI-generated, dramatically reducing the need for human coders.

The company has invested $80 billion in AI for fiscal 2025, fueling a 13% revenue jump last quarter. Yet, this growth comes at a human cost. AI tools like Copilot are automating tasks once handled by entry-level and even mid-career software engineers, making some roles redundant.

Microsoft’s layoffs are part of a broader tech industry trend. Since January, over 1,200 tech companies have downsized, including Meta, Salesforce, and Amazon, all citing AI and the need for operational efficiency.

The paradox is clear: while AI is driving unprecedented profits and innovation, it is also eroding the very jobs that built Silicon Valley’s reputation as a land of opportunity.

For those left behind, uncertainty looms. Teams are being restructured, workloads redistributed, and the promise of a stable tech career is being rewritten. As one laid-off Microsoft engineer put it, “No matter how hard you work, how much you advocate for your company, or how much results and visibility you bring—none of that makes you immune to restructuring”.

The human face of AI layoffs is one of resilience, loss, and a deep questioning of what the future holds for tech workers everywhere.

TAGS: #AI Impact #Microsoft Layoffs #Tech Jobs #Future Of Work #Human Side Of AI #Workforce Change #WBN AI Edition #Elke Porter

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