Microsoft Lays Off AI Engineers — Reported by Fortune and BBC

Microsoft lays off thousands of IT specialists, including those who developed corporate artificial intelligence

In 2025, Microsoft announced a massive wave of layoffs: according to Fortune, the company “let go of nearly 6,000 employees in May, followed by another 9,000 in July.” As BBC reports, these layoffs affected about 4% of the global workforce, as Microsoft decided to “plough money into artificial intelligence.” Many of those let go were developers and engineers who, in recent years, had built and implemented Microsoft’s internal AI systems.

The paradox is highlighted by Financial Express: “The engineers were replaced by the same AI chatbot that they helped to train.” Some employees helped create technologies that soon took over their positions within the company. It’s known that in several divisions, including King studio, AI algorithms today fully automate processes once managed by people.

According to Business Insider, Microsoft managers have recently encouraged remaining employees to actively integrate AI tools not only into their daily work but also for emotional support: “Microsoft managers suggested that laid-off employees use chatbots such as Copilot or ChatGPT not only for work, but to comfort themselves after losing their jobs.” Unsurprisingly, such advice sparked a wave of discussion in professional circles and on social media—raising the point that expertise in AI, once highly valued, is now a reason for staff reductions.

Among those laid off are many who worked to boost efficiency through neural networks. As India Today points out, the company’s AI director encourages rapid adoption of Microsoft Copilot. Meanwhile, employees themselves question whether such massive automation could lead to further layoffs—especially among those who advance this very technology.

“Microsoft has confirmed that it will lay off as many as 9,000 workers, in the technology giant’s latest wave of job cuts this year…,” notes BBC, while Fortune highlights that the company is changing its approach to innovation, betting on AI as a survival and growth strategy in a competitive landscape.

Discussion about this situation often centers on the effectiveness of these decisions: does implementing AI really mean progress if the cost is laying off those who first introduced such tools? What should the balance be between automation and human capital in today’s job market if even AI developers can’t feel secure in their roles?

Respectfully,
Attorney at WINNER Law Firm – Ihor Yasko