Microsoft cuts another 40 jobs in Washington state, continuing layoffs amid AI investment surge

Geek Wire

a day ago

Microsoft has laid off more than 15,000 people globally since May. (GeekWire File Photo / Todd Bishop)
Microsoft laid off another 40 employees in Washington, bringing the total number of job cuts in its home state to 3,160 since May, according to a public filing.
These latest cuts are on a much smaller scale than those made by Microsoft in May and July, when it eliminated 1,985 and 830 positions in the state, respectively, as part of broader layoffs that impacted more than 15,000 people globally.
Microsoft confirmed that these cuts are separate from the prior reductions. The company declined to provide details about the teams, roles, or regions impacted.
'Organizational and workforce changes are a necessary and regular part of managing our business,' a Microsoft spokesperson said in a statement. 'We will continue to prioritize and invest in strategic growth areas for our future and in support of our customers and partners.'
The company said it is providing severance packages and outplacement services to affected employees, including career counseling and job search support. Microsoft noted that some laid-off workers have transitioned to other roles at the company.
The layoffs coincide with record capital spending on AI infrastructure, with the company investing more than $30 billion this quarter alone, in part to expand capacity for training and running AI models. Rising capital expenditures have created pressure to reduce operating costs through workforce reductions.
The ongoing layoffs have created tension inside Microsoft's workplace culture, with some employees expressing concern about job insecurity and what some see as an erosion of the more compassionate environment under CEO Satya Nadella.
In a company-wide memo July 24, Nadella acknowledged the 'uncertainty and seeming incongruence' of cutting jobs while simultaneously making record investments in AI infrastructure, calling the layoff decisions 'among the most difficult we have to make.'
Microsoft's global headcount held steady at 228,000 over the past year, according to its annual 10-K filing. That reflected an initial round of layoffs in May, prior to larger cutbacks in July, even as the company continues to hire in some areas.
The company briefly surpassed a $4 trillion market value after a blockbuster earnings report last week, becoming only the second company to reach that mark. Its stock closed Monday up 2.2%, at a market value of $3.98 trillion.