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Microsoft Engineers Who Built AI Systems Now Losing Jobs to the Same Technology

by Sneha Singh
May 24, 2025
in Tech
Reading Time: 3 mins read
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Microsoft Engineers Who Built AI Systems Now Losing Jobs to the Same Technology
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Microsoft’s latest round of layoffs tells a troubling story about the human cost of artificial intelligence advancement. The tech giant recently cut roughly 6,000 jobs worldwide, but the pattern of who got fired reveals something deeper than typical corporate downsizing.

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Software engineers bore the brunt of these cuts, making up over 40 percent of layoffs in Washington state alone. 

What makes this particularly striking is the timing – these same engineers had been actively working to integrate AI tools into their daily work just months before losing their jobs.

The Bitter Irony of Building Your Own Replacement

The situation gets more uncomfortable when you look at the details. Jeff Hulse, a Microsoft VP who managed 400 engineers, had directed his team to dramatically increase their use of AI-powered coding tools. He wanted them generating up to 50 percent of their code using OpenAI chatbots – more than double the typical 20-30 percent that most developers were using.

Just weeks after following these instructions, Hulse’s entire team was among those laid off. The timing raises an obvious question that many are asking: were these engineers essentially training the AI systems that would eventually replace them?

Microsoft Layoffs: Tech giant trims fat to feed AI growth, 6,000 jobs gone  here's who's out, who's safe
Credits: The Economic Times

Microsoft CEO Satya Nadella has been vocal about AI’s growing role in the company’s operations, noting that artificial intelligence now writes nearly a third of the code in some projects. 

He frames this as a productivity win, but for the engineers who suddenly found themselves unemployed, it feels more like a betrayal.

Beyond Just Coding Jobs

The layoffs weren’t limited to junior programmers either. Microsoft eliminated positions across product management, technical program management, and even roles specifically focused on AI development. Gabriela de Queiroz, who served as Microsoft’s Director of AI for Startups, publicly confirmed her dismissal on social media.

“It’s bittersweet,” she wrote, expressing particular grief for colleagues who “cared deeply, went above and beyond, and truly made a difference.” Her words capture the human element often lost in corporate restructuring announcements.

Meanwhile, employees in customer-facing roles like sales and marketing largely kept their jobs. The message seems clear – Microsoft values roles that directly generate revenue while viewing technical roles as increasingly replaceable by AI.

The Real Reason Behind the Cuts

Microsoft officially describes these layoffs as removing unnecessary management layers, but the numbers don’t support that explanation. Only 17 percent of the Washington state cuts affected managers, which roughly matches the company’s overall management structure.

The more likely driver is cost management as Microsoft pours massive resources into AI infrastructure. The company is expanding data centers and deepening its partnership with OpenAI, investments that require significant capital. 

Cutting engineering salaries helps fund these AI initiatives while the technology simultaneously reduces the need for human developers.

The layoffs have created tension within Microsoft’s workforce. At the company’s Build 2025 event, employee Joe Lopez disrupted proceedings to protest not just the layoffs but also Microsoft’s contracts with the Israeli government. His actions highlight growing unrest among workers who feel their concerns aren’t being heard.

For many affected engineers, the most painful aspect isn’t just losing their jobs – it’s knowing they actively participated in developing the AI systems that made their positions redundant. They spent months learning to work alongside AI tools, increasing their productivity and helping Microsoft transition to AI-driven development processes.

What This Means for the Industry

Microsoft’s approach signals a broader shift in how tech companies view human talent versus AI capabilities. As AI tools become more sophisticated at writing code, companies may increasingly see experienced engineers as expensive overhead rather than essential assets.

This trend extends beyond Microsoft. Across Silicon Valley, companies are weighing the cost of human expertise against the efficiency of AI systems. The question isn’t whether AI will continue replacing jobs – it’s how quickly it will happen and which roles will be affected next.

For the engineers who built these systems only to lose their jobs to them, it’s a harsh lesson in how quickly technology can reshape even the careers of those who create it.

 

Tags: AI in IndustryAI systemsjob cutsMicrosoft
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Sneha Singh

Sneha is a skilled writer with a passion for uncovering the latest stories and breaking news. She has written for a variety of publications, covering topics ranging from politics and business to entertainment and sports.

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