Microsoft AI layoffs
Cumulative jobs cut · Microsoft
Timeline
- Jul 6, 2026−4,800 cutMixedTechnology · US
2.1% of workforce, heaviest in Xbox/gaming (3,200 of the cuts, staged into fiscal 2027). Company invoked AI-driven change in work while simultaneously insisting the eliminated roles were not being replaced by AI; press tied cuts to surging AI infrastructure spending.
Chief People Officer Amy Coleman: 'AI is changing how work gets done' - while adding 'None of the terminated roles will be replaced by AI.'
- Jul 2, 2025−9,000 cutReportedTechnology · US
About 9,000 roles (just under 4% of workforce) cut across divisions including Xbox. Microsoft itself cited 'organizational changes'; press and analysts widely tied the cuts to the company's massive AI capex shift and Nadella's statement that up to 30% of Microsoft code is now AI-written.
Company statement: 'We continue to implement organizational changes necessary to best position the company and teams for success in a dynamic marketplace.' Fortune: 'While Microsoft has not directly attributed the layoffs to AI replacing human workers, the timing and focus of the cuts suggest a shift toward a leaner, more automated organization.'
- May 13, 2025−6,000 cutReportedTechnology · US
~3% of global workforce, heavily hitting software engineers and management layers. Microsoft attributed cuts to organizational streamlining, not AI; press and analysts widely linked them to the $80B AI capex push and AI coding gains.
Microsoft: cuts are 'organizational changes necessary to best position the company for success in a dynamic marketplace.' Context cited by press: CEO Satya Nadella had said 'maybe 20, 30 percent of the code' in some Microsoft repos is 'written by software' (AI).
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