Microsoft lays off 6,000 Workers despite growing AI Investment

Microsoft has laid off around 6,000 employees, nearly 3% of its global workforce, in its second-largest round of job cuts to date.

The layoffs affect workers across levels, departments and geographies.

Among those let go was Gabriela de Queiroz, Director of Artificial Intelligence for Microsoft for Startups.

She confirmed her departure in a post on X:

“I was impacted by Microsoft’s latest round of layoffs. Am I sad? Absolutely. I’m heartbroken to see so many talented people I’ve had the honour of working with being let go.

“These are people who cared deeply, went above and beyond, and truly made a difference.”

Her post included a photograph of her smiling and a message of resilience:

“But if you know me, you know I always look at the bright side. I’m an optimist at heart. That hasn’t changed.

“My smile, my gratitude, my belief that each day is a gift – that’s all still here.”

The job losses follow Microsoft’s increased investment in artificial intelligence.

In April 2025, CEO Satya Nadella revealed that AI now writes up to 30% of the code in some Microsoft projects.

It is reported that software engineers accounted for over 40% of the roughly 2,000 layoffs in Washington state alone.

Some were asked to stop work immediately and activate out-of-office messages.

? Bittersweet news to share: I was impacted by Microsoft’s latest round of layoffs. pic.twitter.com/QPwYJvjQkC

— Gabriela de Queiroz (@gdequeiroz) May 13, 2025

De Queiroz chose to stay on briefly to say goodbye and tie up loose ends.

She said: “I chose to stay a little longer, showing up for meetings, saying goodbye, wrapping up what I could. That felt right to me.”

Observers noted the irony of cutting AI leadership roles while expanding AI operations.

One Microsoft vice president reportedly asked his team to increase AI-generated code output to 50% shortly before more than a dozen engineers were laid off.

De Queiroz ended her message with words of encouragement for others who were impacted.

“What’s next? I don’t know yet. It’s too soon to say. But I trust that something good will come out of this.

“To those also affected, you’re not alone. We are at least 6,000.”

Microsoft has not disclosed which teams were hit hardest. The company said the cuts are part of broader efforts to streamline operations and reduce layers of management.