Microsoft lays off 6,000 in AI restructuring drive; director speaks out
As of June 2024, Microsoft employed 228,000 people globally. This round of layoffs reportedly affected a mix of roles, from engineering to advocacy, and has left many in the tech industry uneasy.
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In its most significant layoff since 2023, Microsoft has let go of approximately 6,000 employees, accounting for nearly 3% of its global workforce. The move is part of the tech giant’s continued efforts to realign its organisational structure amidst an aggressive push into artificial intelligence.
Among those affected is Gabriela de Queiroz, Director of AI for Microsoft for Startups, who took to social media to share the “bittersweet” news of her departure. Queiroz, who joined Microsoft in 2022 and assumed her director role in 2023, posted on X (formerly Twitter) that staff were “asked to stop work immediately” after being informed of the decision.
“Bittersweet news to share: I was impacted by Microsoft’s latest round of layoffs,” she wrote, adding, “We were asked to stop work immediately and set an out-of-office. But I chose to stay a little longer—showing up for meetings, saying goodbye, wrapping up what I could. That felt right to me.”
Queiroz, whose role centred around advancing AI initiatives for startups, expressed sorrow over the number of talented colleagues also affected. “These are people who cared deeply, went above and beyond, and truly made a difference,” she wrote.
We were asked to stop work immediately and set an out-of-office.
— Gabriela de Queiroz (@gdequeiroz) May 13, 2025
But I chose to stay a little longer—showing up for meetings, saying goodbye, wrapping up what I could.
That felt right to me.
The layoffs come as Microsoft continues to double down on AI across its product suite, following major investments in OpenAI and integration of AI features across Windows, Microsoft 365, and Azure. While the company remains bullish on AI, the restructuring signals the growing pains of transitioning a legacy tech organisation into an AI-first future.
In a statement to CNBC, a Microsoft spokesperson said, “We continue to implement organisational changes necessary to best position the company for success in a dynamic marketplace.” The news has drawn attention on social media, with many expressing shock that even senior-level AI talent was affected. One user commented, “If the Director of AI at Microsoft can get laid off, then nobody’s safe in today’s market.”
As of June 2024, Microsoft employed 228,000 people globally. This round of layoffs reportedly affected a mix of roles, from engineering to advocacy, and has left many in the tech industry uneasy, even as Microsoft’s stock continues to perform strongly, buoyed by its AI ambitions.
Queiroz ended her post on an optimistic note, “I’m an optimist at heart. That hasn’t changed. My smile, my gratitude, my belief that each day is a gift—that’s all still here. To those also affected—you’re not alone. We are at least 6,000.”
