The Microsoft layoffs in May 2025 weren’t just about budget cuts or a post-pandemic correction. This time, it’s much bigger — a strategic reset led by artificial intelligence. Here’s what really happened (and why most headlines don’t tell the full story).
AI Didn’t Just Take Jobs — It Took Managers
Microsoft just laid off nearly 6,000 employees — and while they called it “restructuring,” the truth is simpler:
AI tools like Copilot are doing the work of entire teams.
Performance reviews, meeting summaries, project updates — it’s 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 isn’t about cost-cutting. It’s cost reallocation — 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 — and data scientists walked in.
The product’s 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? They’re being pushed fully remote.
Rumor has it: Microsoft plans to downsize its Seattle footprint by 2026.
Where’s the Employee Rage? Not LinkedIn — Try Reddit & Blind
Laid-off employees aren’t venting on LinkedIn anymore — they’re getting raw on Reddit and Blind:
- “AI made us disposable.”
- “Loyalty means nothing in Big Tech.”
Some ex-employees even built a “Layoff Survivors Toolkit” on GitHub with job links, side hustle ideas, and mental health tips.
What’s Really Going On: Not Just Layoffs — A Full Reset
This isn’t just a wave of cuts. It’s a massive strategic shift toward a future where AI runs the show.
If your job can be automated, it probably will be.
And if you’re not learning how to work with AI — you’re at risk of being next.
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