Microsoft Restructuring Hits Product Development Hard
Microsoft recently announced a large-scale restructuring, cutting around 6,000 jobs across 13 divisions. Washington state, home to Microsoft’s headquarters, accounts for about a third of these cuts, with more than 2,000 jobs affected. Among these, software developers bear the brunt—approximately 800 developer roles have been eliminated, representing over 40% of total cuts in the region.
This shift is largely driven by advances in AI-based coding and analysis tools. Microsoft CEO Satya Nadella revealed that AI already writes about 30% of the code. This automation reduces the need for traditional developer roles, prompting major adjustments in product development teams.
Roles Affected Beyond Developers
After developers, product management and technical program management positions were also significantly impacted. These roles account for around 600 layoffs, roughly 30% of the total job cuts. In contrast, sales and marketing teams that have direct customer interaction were less affected.
Big Tech’s AI-Driven Restructuring Trend
Microsoft isn't alone in this wave of restructuring. Across the tech industry, AI is reshaping workforce needs, leading many companies to reduce headcount while reallocating resources toward AI development.
- Amazon recently cut about 100 jobs in its devices and services division, including teams working on Kindle, Echo, Alexa, and autonomous vehicles. Since early 2022, Amazon has laid off approximately 27,000 employees.
- Meta cut around 3,600 jobs (about 5% of its workforce) in February, followed by additional layoffs in its Reality Labs VR division.
- Salesforce announced over 1,000 job cuts earlier this year, focusing on AI-driven sales roles while slowing engineering hires starting in 2025.
- Workday also restructured, prioritizing AI-related strategic hires.
What Product Development Professionals Should Consider
As AI continues to automate coding and program management tasks, product developers need to adapt. Upskilling in AI tools and understanding how to collaborate with AI-driven systems will become essential. Exploring targeted AI courses can provide a competitive edge in this changing environment.
For product developers looking to expand their AI skills, resources like Complete AI Training’s courses for product development roles offer practical learning paths tailored to integrate AI into your workflow.
Staying informed and proactive about AI’s impact on product development roles will help professionals remain relevant and valuable as the industry evolves.
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