The Microsoft layoffs in May 2025 werenβt just about budget cuts or a post-pandemic correction. This time, itβs much bigger β a strategic reset led by artificial intelligence. Hereβs what really happened (and why most headlines donβt tell the full story).
AI Didnβt Just Take Jobs β It Took Managers
Microsoft just laid off nearly 6,000 employees β and while they called it βrestructuring,β the truth is simpler:
AI tools like Copilot are doing the work of entire teams.
Performance reviews, meeting summaries, project updates β itβs all being automated.
A lot of mid-level managers suddenly found themselves⦠replaceable.
If You Were Earning Big, You Were a Bigger Target
Most of the cuts hit folks earning $200K or more, especially in the U.S. and UK.
Why? Because Microsoft is shifting expensive roles to cheaper markets like India and Latin America.
This isnβt about cost-cutting. Itβs cost reallocation β Silicon Valley style.
Inside LinkedIn: What Really Happened
Yes, LinkedIn was hit too. But not because teams underperformed.
Microsoft is quietly transforming LinkedIn from a social job board into a high-end AI-powered hiring tool.
That means older teams in marketing, design, and editorial got the boot β and data scientists walked in.
The productβs changing, so the people behind it are too.
Seattle Feels… Empty
Nearly 2,000 employees were cut in Washington state alone.
Entire office floors at Microsoft HQ are now empty. Hybrid teams? Theyβre being pushed fully remote.
Rumor has it: Microsoft plans to downsize its Seattle footprint by 2026.
Whereβs the Employee Rage? Not LinkedIn β Try Reddit & Blind
Laid-off employees arenβt venting on LinkedIn anymore β theyβre getting raw on Reddit and Blind:
- βAI made us disposable.β
- βLoyalty means nothing in Big Tech.β
Some ex-employees even built a βLayoff Survivors Toolkitβ on GitHub with job links, side hustle ideas, and mental health tips.
Whatβs Really Going On: Not Just Layoffs β A Full Reset
This isnβt just a wave of cuts. Itβs a massive strategic shift toward a future where AI runs the show.
If your job can be automated, it probably will be.
And if youβre not learning how to work with AI β youβre at risk of being next.
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