Microsoft Lays Off 40% of Software Engineers in Washington Amid Rise of AI-Assisted Coding

Programmers in Microsoft's home state of Washington have been disproportionately affected by recent layoffs, according to a report from Bloomberg. Out of the approximately 2,000 employees laid off in Washington, over 40% were software engineers, the largest category impacted. In contrast, relatively few sales or marketing positions were cut. While it's true that coders make up a significant portion of Microsoft’s workforce—though the exact percentage is not publicly disclosed—the layoffs are part of a broader restructuring effort affecting around 6,000 employees globally. This move comes just weeks after CEO Satya Nadella announced that AI now generates up to 30% of the company’s code. When questioned about the potential link between the layoffs and the increasing reliance on AI-assisted coding, Microsoft declined to comment. However, the company has previously stated that the layoffs are intended to streamline management layers and improve organizational efficiency. Nadella's announcement highlights the growing role of AI in software development. While AI can automate some coding tasks, making the process faster and more efficient, it also raises questions about the future of human coders in the industry. The layoffs suggest that Microsoft may be reevaluating its workforce needs in light of these technological advancements. However, the extent to which AI is driving these decisions remains unclear. The shift towards AI-assisted coding is part of a broader trend in the tech industry, where companies are increasingly looking to leverage automation and machine learning to optimize their operations. For Microsoft, this means not only adopting new technologies but also adapting its workforce to remain competitive in a rapidly evolving landscape. As other tech giants follow suit, the impact on software engineers and other tech professionals could become more widespread, making it crucial for them to stay abreast of these changes and develop new skills to remain relevant.