Amid a series of big tech restructuring from artificial intelligence (AI)...
Developers are the biggest victims of restructuring, as highlighted in a recent Bloomberg report. Microsoft (MS) announced a large-scale restructuring plan, with software developers bearing the brunt of the impact in Washington state, home to Microsoft headquarters. Approximately 40% of the total job cuts in the state targeted software developers, amounting to around 800 out of 2,000 job losses.
Impact of AI on Job Roles
The rise of artificial intelligence (AI)-based code writing and analysis tools has led to the automation of many traditional software developer roles. Microsoft CEO Satya Nadella revealed at Meta's AI Developers Conference that AI now writes 30% of the code, indicating a significant shift in the industry.
Following developers, roles in product management and technical program management also faced significant cuts, with around 600 positions impacted. This restructuring trend, driven by AI integration, is not unique to Microsoft but prevalent across the tech industry.
Industry-Wide Restructuring
Amazon, another tech giant, recently announced layoffs of approximately 100 employees in its devices and services sector. This reduction affected product development areas such as Kindle, Echo Speaker, Alexa Voice Assistant, and Zoox autonomous vehicles. Amazon has already let go of about 27,000 employees since the beginning of 2022.
Meta, formerly Facebook, also downsized its workforce by approximately 3,600 employees, accounting for 5% of its total workforce, in February.
Additional layoffs were witnessed in its virtual reality division Reality Labs in April, further demonstrating the industry's shift towards AI-driven operations.
Company-Specific Impact
Businesses like Salesforce and Workday have also announced restructuring plans in response to the growing influence of AI. Salesforce aims to focus on AI-centric sales roles, intending to reduce engineer hiring from 2025 onwards. Workday, on the other hand, is focusing on strategic talent acquisition related to AI to adapt to the evolving tech landscape.
