Microsoft has carried out another round of layoffs, eliminating over 300 positions just weeks after its largest workforce reduction in years.
The latest job cuts, announced on June 2, 2025, follow the 6,000 layoffs in May, underscoring the tech industry’s ongoing efforts to trim costs while investing heavily in artificial intelligence (AI).
A Microsoft spokesperson confirmed that the new headcount reduction is part of the company’s organizational restructuring, aimed at positioning itself for success in a dynamic marketplace.
The layoffs reflect a broader trend in the tech sector, where companies are prioritizing AI-focused roles while reducing traditional workforce numbers.
Details of the Latest Layoffs at Microsoft
According to a Washington state notice, more than 300 employees were informed that their positions had been eliminated on Monday, June 2.
While Microsoft has not disclosed the exact departments affected, previous layoffs primarily impacted software engineers.
The company’s previous workforce reduction in May affected approximately 3% of its global headcount, with 2,000 roles cut in Washington state alone.
The latest layoffs indicate that Microsoft is continuing its cost-cutting measures, despite its aggressive investments in AI infrastructure.
AI’s Role in Workforce Changes
Microsoft’s layoffs come amid a major shift toward AI-driven automation, which is reshaping the tech labor market.
The company has been touting AI-assisted coding tools, which speed up software development and reduce reliance on human engineers.
Other tech giants, including Meta and Salesforce, have also reported that AI adoption has allowed them to hire fewer workers, reinforcing concerns about job displacement in the industry.
Microsoft Strategic Focus
Despite the layoffs, Microsoft continues to invest billions in AI, positioning itself as a leader in AI-powered enterprise solutions.
CEO Satya Nadella has emphasized that the company’s realignment strategy is focused on long-term priorities, rather than individual employee performance.
At a recent all-hands town hall, Satya explained that the layoffs were part of a broader initiative to streamline operations, ensuring that Microsoft remains competitive in an evolving industry landscape.
Industry-Wide Impact
Microsoft’s layoffs reflect a larger trend in the tech sector, where companies are restructuring their workforce to align with AI-driven efficiencies.
According to Layoffs.fyi, more than 61,220 tech professionals have lost their jobs in 2025 across 130 companies, including Google, Amazon, and Meta.
The shift toward AI automation has sparked concerns about the future of entry-level jobs, with experts predicting that AI could replace up to 50% of junior white-collar roles within the next five years.
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