Microsoft’s latest round of layoffs has ignited debate about the company’s use of artificial intelligence (AI). According to media reports, approximately 6,000 employees were let go across the company, with about 40% of those being from the software development team. Shockingly, some of these developers were replaced by the very AI chatbot they had been training.
The Information revealed that Jeff Hulse, a Microsoft VP overseeing 400 personnel, had encouraged his team to rely more heavily on AI coding a few months prior to the layoffs. Hulse instructed the team to incorporate up to 50% AI-generated code, a significant increase from the previous 20-30% allowance. This move allowed software engineers to utilize OpenAI’s chatbot to expedite their work. However, it was soon followed by the layoff of the very employees who had been helping train the AI.
The layoffs weren’t limited to junior members; people in product management, technical program management roles, and those working on other AI projects were also affected. While Microsoft claims the restructuring was aimed at removing management layers, industry insiders suggest that cost-cutting and investments in AI projects were the primary motivations. Notably, 17% of those laid off were managers.
This incident isn’t an isolated case of controversy surrounding Microsoft and AI. Recently, the company faced backlash from employees over its alleged involvement in the Israel-Gaza conflict, which Microsoft’s investigation denied. However, the incident has raised further questions about the company’s handling of sensitive issues and its increasing reliance on AI technology.
