Microsoft layoff breakdown: Coders, product managers hit hard as company cuts 6,000 jobs

Microsoft's recent layoffs, impacting roughly 2,000 Washington state employees, heavily affected software engineers (40%) and project/product managers (30%).

Image Credit: Getty

Microsoft's latest round of layoffs has disproportionately affected software engineers and project managers, as the tech giant accelerates its pivot towards artificial intelligence. According to internal documents reviewed by Bloomberg, more than 40% of the roughly 2,000 jobs eliminated in Washington state belonged to software engineering roles. Project and product management positions accounted for nearly 30% of the affected roles in the state.

Earlier, the company had announced this week that around 6,000 positions would be cut across its global workforce — less than 3% of its total 228,000 employees. The Washington state layoffs represent nearly one-third of that total.

The job cuts come amid Microsoft's aggressive investment in AI infrastructure and tools that are beginning to automate traditional coding roles. CEO Satya Nadella recently said that AI now writes up to 30% of code in certain projects, a sign that artificial intelligence is fundamentally altering how software development teams operate.

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

Despite claims that the restructuring aimed to "reduce management layers," data suggests only 17% of the Washington layoffs involved managers — a figure aligned with the proportion of managers in Microsoft's broader workforce. Some AI project managers were among those let go, while sales and marketing roles saw minimal impact.

The layoffs reflect a broader trend across the tech sector as companies recalibrate their workforces in response to AI advancements. Salesforce recently announced it would reduce engineering hiring in 2025 due to increased reliance on AI, while Workday said in February it would continue to hire for strategic AI roles despite implementing broader job cuts.