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With AI writing 30% of its code Microsoft now cuts human coder jobs

Microsoft's recent layoffs in its home state of Washington disproportionately affected software engineers with over 40% of the 2000 local job cuts coming from this department.

byKerem Gülen
May 16, 2025
in Industry
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Microsoft’s recent layoffs in its home state of Washington hit software engineers the hardest, with over 40% of the 2,000 people affected coming from this department, according to a Bloomberg report citing state filings. The layoffs, part of a larger 6,000-person reduction across the company, saw relatively few sales or marketing positions impacted.

Coders make up a significant portion of Microsoft’s workforce, although the company doesn’t disclose the exact proportion. The recent cuts follow CEO Satya Nadella’s statement last month that up to 30% of Microsoft’s code is now written by AI. When asked by TechCrunch if the layoffs were related to the rise of AI-assisted coding, Microsoft declined to comment.

Microsoft has stated that the layoffs are intended to reduce management layers, streamlining the company’s structure. The disproportionate impact on software engineers has raised questions about the role of AI in the tech industry, particularly in coding and software development.

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