Microsoft announced the end of over 300 jobs on Monday, June 2, 2025, as part of ongoing efforts to streamline operations, according to a Washington state notice reviewed by Bloomberg.

This follows the company’s largest layoff in years, with 6,000 positions cut last month.

What is the reason behind this?
A Microsoft spokesperson stated, “We continue to implement organisational changes necessary to best position the company for success in a dynamic marketplace.”

These layoffs come as the tech industry pushes to reduce costs while heavily investing in artificial intelligence (AI) technologies.

Impact of AI on tech jobs
The AI boom is significantly reshaping the tech labour market, according to The Economic Times. Companies like Microsoft and Meta Platforms are prioritising AI-focused roles and AI-assisted tools, such as coding software, to enhance efficiency and reduce the need for certain positions.

For instance, Salesforce recently started hiring fewer workers due to the internal use of AI.

Previous layoffs
Microsoft’s earlier layoffs primarily affected software engineers, though specific roles impacted by the June 2 cuts remain undisclosed. As of June 2024, Microsoft employed approximately 2,28,000 full-time staff, with 55% based in the United States.