In 2024 or 2025, the word layoffs is still giving nightmares to employees across the world. And we are here with yet another layoff story in the headlines. On 4 August, Microsoft said its final goodbye to 40 more Washington-based employees. These are again different from the mass layoffs that happened back in May (6000 employees) and in July (9000 employees). In total, around 3160 positions were eliminated alone in Washington state (Redmond headquarters). Make no mistake, Microsoft is doing well financially this year (so far). So, why are these terminations happening now? Is it the AI, again?
Microsoft Didn’t Stop Hiring New Employees
Overall, 15000+ employees lost their jobs in 2025 at Microsoft. The gaming and sales departments took a major hit. But, here’s the upside (to the flip side of those layoffs). Microsoft is hiring new employees. The total global headcount of Microsoft is 228,000, the same as the previous year. Now these numbers say something; they indicate a shift in how Microsoft is working. Microsoft is cutting down on roles that the company doesn’t require and investing in roles that foster the company’s growth.
Shift to AI At Microsoft
The company is seeing record high layoffs while reporting strong quarterly revenues $76.4 billion, increased 18% (up 17% in constant currency).’ All thanks to AI. Microsoft heavily relies on AI; it integrates AI across all its products to ensure an enhanced user experience. Microsoft firmly believes in the notion of automation, getting work done faster, and high productivity.
The company reportedly invested around 88 billion over the last year and aims to invest another 30 billion by September 2025.
Satya Nadella, chairman and chief executive officer of Microsoft, said, “Cloud and AI is the driving force of business transformation across every industry and sector.”
He further added, “We’re innovating across the tech stack to help customers adapt and grow in this new era, and this year, Azure surpassed $75 billion in revenue, up 34 percent, driven by growth across all workloads.”
Conclusion:
Despite over 15000+ job cuts, Microsoft registers steady growth and is hiring new employees. The move is surely driven by hefty investment in AI, but doesn’t indicate direct replacement of humans. $76.4 billion in revenue shows a shift in its workforce and realignment rather than instability. What do you think AI is still to blame for?
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