https://www.latimes.com/business/story/2025-05-15/microsoft-layoffs-hit-its-silicon-valley-workforce
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- Microsoft is laying off 122 workers in its Silicon Valley offices, primarily in Mountain View & Santa Clara.
- The layoffs were disclosed in a notice to the California Employment Development Department (EDD).
- Microsoft cited reorganization & restructuring as the reason behind the cuts.
- The affected employees will officially lose their jobs in July 2025.
- The layoffs are part of a broader move by Microsoft to cut 6,000 jobs globally, around 3% of its workforce.
- These are among Microsoft’s largest job cuts in two years, continuing the wave of tech layoffs that began in 2022.
- Software engineers made up 53% of the affected positions in Silicon Valley.
- Other affected roles include product managers, applied scientists, & electrical engineers.
- The rise of AI-generated code is contributing to uncertainty in engineering roles.
- Microsoft CEO Satya Nadella said AI now writes up to 30% of the company’s code, during an event with Meta CEO Mark Zuckerberg.
- Microsoft is trying to move faster & cut managerial layers to compete in the AI arms race with Meta & Google.
- The company wants to reduce redundancies & empower staff to focus on “more meaningful work” using AI tools.
- As of June 2024, Microsoft had 228,000 full-time employees, more than half in the U.S.
- Microsoft reported $70 billion in revenue for Q3 of its fiscal year ending in March, up 13% year over year.
- Net income for the quarter was $26 billion, reflecting a 16% increase from the prior year.