Microsoft has confirmed another round of job cuts, this time affecting just over 40 positions at its Redmond headquarters. While far smaller than the earlier layoffs of 6,000 in May and 9,000 in July, it still marks the fifth consecutive month of staff reductions in 2025. In total, more than 15,000 employees have been let go since the company announced its $80 billion push into AI earlier this year.
The September cuts targeted engineering, product management, and legal teams. Though the numbers are modest, the pattern of steady monthly layoffs raises questions about whether Microsoft has normalized trimming staff as part of its long-term restructuring.
This restructuring is tightly linked to Microsoft’s AI ambitions. The company is pouring billions into data centers, custom hardware, cloud expansion, and AI tools like Copilot. CEO Satya Nadella has framed it as balancing record profits with cost pressure. Still, critics argue that the massive AI spending makes the layoffs feel less about necessity and more about priorities.
At the same time, Microsoft is shifting its hiring focus. Traditional roles are being reduced while new positions in AI, machine learning, and cloud infrastructure open up. A $4 billion “Elevate” program is also being launched to reskill workers for the AI-driven job market.
Microsoft isn’t alone in this transition, as Google, Meta, and Amazon are all cutting roles while doubling down on automation. But for employees, the message is unsettling. Jobs are disappearing, AI tools are replacing traditional tasks, and the future of work inside one of the world’s biggest tech companies feels increasingly uncertain.
For now, Microsoft’s layoffs appear less like temporary cost-cutting and more like a calculated transformation toward an AI-first future.