- Microsoft laid off about 6,000 employees, including software engineers and product managers, despite booming demand for AI and software.
- The layoffs reflect a broader shift as generative AI begins to reshape white-collar work, particularly in coding roles.
- Brookings researcher Molly Kinder notes that engineers are the “first — but won’t be the last” to be impacted by AI integration.
- Other firms, like Shopify, DuoLingo, and Norway’s sovereign wealth fund, are reducing or freezing hiring due to AI.
- Alphabet and Microsoft say over 30% of their code is now AI-generated or AI-assisted.
- Companies like Intuit, Expedia, and Coca-Cola are using AI to cut costs and boost productivity across coding, marketing, and content creation.
- Palantir claims AI agents can be “50 times” more productive than human workers.
- Economic uncertainty, including tariff-related turmoil, is accelerating corporate interest in AI over expanding human headcount.
- Economist Nicholas Bloom says the hiring slowdown is worsened by poor business sentiment and global instability.
- The rise of AI during economic unease may signal a “perfect storm” for job displacement in roles once considered secure.
https://www.bloomberg.com/news/articles/2025-05-17/microsoft-layoffs-highlight-ai-driven-hiring-pauses