In Microsoft’s home state of Washington, software engineering was by far the largest single job category to receive layoff notices, making up more than 40% of the roughly 2,000 positions cut, according to state documents reviewed by Bloomberg.
Microsoft on Tuesday said it would cut about 6,000 workers across the company. The Washington state data represents about a third of the total.
As Microsoft and its rivals make steep investments in AI, they are scrutinizing costs and reprioritizing budgets. In recent weeks, Microsoft executives have pledged to keep a lid on spending amid huge investments in data center construction.
The job cuts also targeted some managers and workers assigned to AI projects, according to a person familiar with the cuts.
Relatively few customer-facing roles, such as sales or marketing, were impacted, the data show. Microsoft declined to comment.
Microsoft said the layoffs were designed to remove layers of management. But it’s not clear how much delayering is actually going on. About 17% of those axed in Washington were classified as managers. The company employed about the same percentage of managers across its entire operation at the end of 2023, according to a workforce report filed with the US Equal Employment Opportunity Commission.
