Latest Microsoft layoffs target engineering, product and legal roles, records show

Software engineers, product managers, technical program managers, product marketers, and legal staff were most impacted by Microsoft’s latest round of layoffs. New data from the Washington state Employment Security Department, obtained by GeekWire, reveals how Microsoft is trimming its workforce — and provides a window into how tech companies are looking to streamline headcount amid the AI boom. Microsoft is laying off 305 people in Redmond, Wash., as part of a new round of cuts that follow a separate layoff last month impacting nearly 3% of its global workforce, or about 6,000 employees. Of those 305 positions, software engineering roles… Read More

Jun 4, 2025 - 02:50

(GeekWire Photo / Todd Bishop)

Software engineers, product managers, technical program managers, product marketers, and legal staff were most impacted by Microsoft’s latest round of layoffs.

New data from the Washington state Employment Security Department, obtained by GeekWire, reveals how Microsoft is trimming its workforce — and provides a window into how tech companies are looking to streamline headcount amid the AI boom.

Microsoft is laying off 305 people in Redmond, Wash., as part of a new round of cuts that follow a separate layoff last month impacting nearly 3% of its global workforce, or about 6,000 employees.

Of those 305 positions, software engineering roles were hit hardest, making up about 22% of impacted employees, or 67 workers. Other top affected disciplines include:

Product management: 39 employees
Technical program management: 35
Product marketing: 30
Business program management: 22
Legal counsel: 22

The data mirrors similar trends in Microsoft’s layoff last month, per Bloomberg, citing data from Washington state.

It shows that software engineering roles are not immune to the impact from generative AI tools, which are already having a big effect on coding. Speaking at LlamaCon 2025 on April 30, Microsoft CEO Satya Nadella said that up to 30% of Microsoft’s code is now AI-generated.

Microsoft has not said whether AI efficiencies played a direct role in the recent layoffs. However, the company said, in general, it’s seeking to help workers use new technologies to focus on the most meaningful and important tasks.

Microsoft has also signaled a move to strip management layers, a strategy also touted by other tech giants including Amazon.

The latest cuts in Washington state impacted a mix of individual contributor and management levels. “IC4” roles, or mid-level individual contributors, were the most affected.

On Microsoft’s April 30 earnings call, CFO Amy Hood said the company was focused “on building high-performing teams and increasing our agility by reducing layers with fewer managers.”

The new cuts also impacted 22 legal counsel positions and five paralegal roles in Washington state. Legal positions were not impacted in the layoffs last month.

The latest round of cuts brings the company’s total reported layoffs in its home state to nearly 2,300 in recent weeks.

“We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace,” the spokesperson said in an emailed statement Monday.