Are Microsoft’s Coders Becoming Obsolete? The AI Shift Behind Mysterious Layoffs

Programmers have emerged as the primary group affected by Microsoft’s recent round of layoffs in Washington state, making up more than 40% of the roughly 2,000 eliminated positions there, according to state filings. In contrast, roles in sales and marketing saw relatively fewer reductions.

These cuts are part of Microsoft’s broader initiative involving around 6,000 layoffs across the company, as announced recently. Though the exact proportion of software engineers within Microsoft’s total workforce isn’t publicly disclosed, it is widely acknowledged that coders constitute a significant segment of the company’s employment base.

The timing of these cuts has sparked questions, particularly after CEO Satya Nadella noted in a statement last month that artificial intelligence is now authoring up to 30% of Microsoft’s internal code. When asked directly whether the layoffs in software engineering were influenced by increased reliance on AI-generated programming, Microsoft declined to comment specifically. Instead, it reiterated earlier statements indicating the layoffs represent an effort to streamline organizational structures by reducing management layers.

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