Coders Hit Hardest in Microsoft Layoffs Amid AI Investment Boom

Microsoft Corp.'s recently announced job cuts fell hardest on the people who build the company's products, showing that even software developers are at risk in the age of artificial intelligence.

- BLOOMBERG

In Microsoft's home state of Washington, software engineering was by far the largest single job category to receive layoff notices, making up more than 40 percent of the roughly 2,000 positions cut, according to state documents reviewed by Bloomberg.

Microsoft on Tuesday said it would cut about 6,000 workers across the company. The Washington state data represents about a third of the total.

As Microsoft and its rivals make steep investments in AI, they are scrutinizing costs and reprioritizing budgets. In recent weeks, Microsoft executives have pledged to keep a lid on spending amid huge investments in data center construction.