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Microsoft Cuts 6,000 Roles to Accelerate $80 Billion AI Strategy

Aparna Chennapragada argues that evolving AI-driven tools will transform coders into “software operators” rather than render them obsolete

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Overview

  • Microsoft eliminated 6,000 positions—about 3% of its global workforce—in a reorganization designed to realign resources toward AI priorities.
  • CEO Satya Nadella described the layoffs as structural realignment unrelated to employee performance.
  • The company plans to invest nearly $80 billion in AI infrastructure this fiscal year and expand its Copilot AI assistant across customer segments.
  • Satya Nadella said AI now writes up to 30% of code in certain internal projects, reflecting the technology’s growing role in development.
  • Chief Product Officer Aparna Chennapragada said coding remains essential as engineers shift to guiding AI outputs and project managers focus on curating and editing AI-generated ideas.