Microsofts 6000 layoffs expose the dark side of AI: Is AI taking over?

Laying off 6,000 people, including its Director of AI for Startups, caught many in the tech industry by surprise and made the darker aspects of AI clear. Though the business believes that pushing into AI will lead to future gains, the layoffs signal the impact it is having on its staff.

The Microsoft layoffs: Not even AI leaders were spared

Microsoft revealed on May 15, 2025, that the layoffs will affect almost 3% of its worldwide staff. One main point is that such problems arose even for high-level AI leaders working on AI systems. AI leaders like de Queiroz were not immune. On X (formerly Twitter), she wrote, “I was impacted by Microsoft's latest round of layoffs. Am I sad? Absolutely. I'm heartbroken to see so many talented people I've had the honor of working with being let go. These are people who cared deeply, went above and beyond, and truly made a difference.” De Queiroz chose to complete and end her current tasks, even after being ordered to stop which left many in tech with a lasting good impression.

Were employees at Microsoft laid off by algorithm?

The layoffs were not limited to high-profile executives. Software engineers and long-time employees bore the brunt, with over 2,000 roles cut in Washington state alone. In a viral Reddit post, the wife of a 25-year Microsoft veteran shared, “My husband has worked for Microsoft for 25 years. He was just laid off, randomly selected by a computer algorithm. His last day is this Friday, his 48th birthday.”
Her story highlighted the impersonal nature of the process. “He never missed a day of work. Rarely called sick… Worked 60+ hours a week… He never asked for raises or promotions—he just kept showing up and solving impossible problems.”

On Quora and Reddit, other employees echoed similar sentiments, with one user writing, “We’re just numbers to the system now. AI is supposed to help us, not replace us.”Another added, “It’s ironic that the same AI we built is now being used to decide who stays and who goes.”

The tech industry is experiencing division. For some, the dismissal of staff is required by Microsoft to help them maintain their competitive edge against Google, Amazon and Meta. Other people, mostly found on social media, think it signals that AI has gone too far and impacts the lives of ordinary people.

A lot of questions like this appear on Quora and Reddit. Should we expect this to become the usual way of working? Could AI have a say in what happens to us? “How can you stay driven when there’s a possibility your job could be gone in no time due to computers?”

Future outlook

Those who worked on Microsoft’s AI projects being laid off shows that innovations in artificial intelligence can create fresh challenges and sometimes result in job losses. Automation in companies could lead to a lack of focus on human skills, values and emotions in technology. Microsoft claims that these cuts are made to help the company thrive in a constantly changing market environment by streamlining work and leadership.

The company plans to use billions of dollars into AI technology to make routine duties automatic and enable its staff to dedicate themselves to important work. Microsoft is relying on AI more every day, even as it leads to thousands of job cuts. Last week, CEO Satya Nadella shared that AI is now involved in writing up to 30% of Microsoft software and project managers have been instructed to maximise that percentage.

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