Profits and layoffs at Microsoft

During May’s round of layoffs, Microsoft emphasized that it wanted to flatten management layers. But data from Washington state showed only about 17% of those cuts in Redmond, where Microsoft is headquartered, were designated as managers. … “Our platform, hardware and game road map have never looked stronger,” he said. “The success we’re seeing currently is based on tough decisions we’ve made previously. … We will protect what is thriving and concentrate effort on areas with the greatest potential, while delivering on the expectations the company has for our business.” … The roles affected during layoffs in May and June included some that could be changed by AI-driven efficiencies. Software engineers were hit the hardest, with more than 800 laid off in Washington out of the initial 1,985 employees laid off in May. Other heavily represented roles were product and program managers.

A pretty brutal connection between future predcited efficiencies gained by AI and direct impact on the employees. But i included some quotes that didn’t sit well with me. Namely that ‘org-flattening’ didn’t reflect in the data, and the especially hard hit gaming division seemed to say we’re doing great. I get that we are all in service to the allmighty shareholder, but it seems like social costs shouldn’t be pushed onto tax payers… No answers, just duly noted.

_{Quote Citation: Alex Halverson, “Microsoft to lay off about 9,000 employees in latest round”, July 2, 2025 at 5:05 pm, https://www.seattletimes.com/business/microsoft/microsoft-to-lay-off-as-many-as-9000-employees-in-latest-round/}