Microsoft's second biggest job cuts: Coders, managers, and others who are being asked to leave

Microsoft's recent round of layoffs has hit software engineers hardest, with over 40% of the approximately 2,000 positions eliminated in Washington state belonging to coding professionals, according to documents reviewed by Bloomberg.

The tech giant announced Tuesday it would cut around 6,000 workers company-wide, representing less than 3% of its 228,000-person workforce. The Washington state data represents roughly one-third of the total layoffs.

Project management roles were also significantly impacted, with product management and technical program management positions accounting for nearly 30% of Washington cuts, Bloomberg reports.
AI tools reshaping developer workforce.

The layoffs come as Microsoft invests heavily in artificial intelligence technology that's beginning to automate aspects of software development. CEO Satya Nadella revealed in April that AI now writes up to 30% of code in some Microsoft projects.

"We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace," a Microsoft spokesperson said.

The company has been scrutinizing costs while simultaneously pouring billions into AI infrastructure, with approximately $80 billion allocated for data center spending this fiscal year.

Management layers targeted despite "delayering" claims
Although Microsoft framed the cuts as an effort to "reduce management layers," Bloomberg's analysis shows only about 17% of those laid off in Washington were classified as managers—roughly equivalent to their representation in the company's overall workforce.

The cuts also affected some AI project managers, according to a person familiar with the matter, while relatively few customer-facing employees in sales and marketing were impacted.

Microsoft joins other tech companies reshaping their workforces around AI capabilities. Salesforce plans to reduce engineering hiring in 2025 due to AI usage, while Workday announced in February it would continue hiring in strategic AI areas despite broader cuts.

Microsoft declined to comment on the specific distribution of layoffs across job categories.