Microsoft Reduced Over 300 Jobs Just Weeks After Laying Off 6,000 Employees

Microsoft Corporation (NASDAQ:MSFT) has fired off over 300 more employees, according to a Washington state file reviewed by Bloomberg, adding to the 6,000 job layoffs revealed last month.

Microsoft reduced over 300 jobs just weeks after laying off 6,000 employees

A development team working together to create the next version of Windows.

According to a business representative, the cuts are a part of larger organizational adjustments meant to bring operations into line with a changing market.

The layoffs are a reflection of the IT industry’s continuous restructuring as big businesses allocate resources to AI. Microsoft Corporation (NASDAQ:MSFT) is shifting its investments to AI technologies like Copilot. As of June 2024, the company has 228,000 employees, with 55% of them situated in the United States.

Companies like Microsoft Corporation (NASDAQ:MSFT) and Meta Platforms can lessen their need for traditional coding positions due to these tools, which have been hailed for speeding up software development.

According to Salesforce, the use of AI has decreased the requirement for recruiting.

Although the roles impacted in this most recent round are still unknown, software developers were the primary target of Microsoft Corporation (NASDAQ:MSFT)’s previous layoffs.

While we acknowledge the potential of MSFT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MSFT and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 High-Growth EV Stocks to Invest In and 13 Best Car Stocks to Buy in 2025.

Disclosure. None.