Microsoft cuts hundreds more jobs after firing 6,000 last month

[NEW YORK] Microsoft cut hundreds more jobs just weeks after its largest layoff in years, underscoring the tech industry’s efforts to trim costs even as it ploughs billions of US dollars into artificial intelligence (AI).

More than 300 employees were told their positions had been eliminated on Monday (Jun 2), according to a Washington state notice reviewed by Bloomberg.

A Microsoft spokesperson said the latest headcount reduction is in addition to the 6,000 job cuts announced last month. “We continue to implement organisational changes necessary to best position the company for success in a dynamic marketplace,” the spokesperson said.

The AI boom has roiled the tech labour market because companies are prioritising AI-focused jobs and harnessing the technology to save money.

Microsoft and peers including Meta Platforms have touted the effectiveness of AI-assisted coding tools in speeding up the software development process.

Last week, Salesforce said the internal use of AI has allowed it to hire fewer workers.

Microsoft’s previous layoffs fell hardest on software engineers. It could not be determined what kind of jobs were affected on Monday. As at June 2024, the company had about 228,000 full-time employees, 55 per cent of whom were employed in the US. BLOOMBERG