microsoft layoffs 2025 update: Microsoft’s brutal layoffs: Can you believe it? Even the AI director was fired; here are the others who could be impacted

Microsoft Layoffs 2025: Even AI Director Not Spared as 6,000 Employees Let Go Globally- In a major workforce shake-up, Microsoft layoffs have impacted 6,000 employees across departments and countries—roughly 3% of its global workforce. Among those affected was Gabriela de Queiroz, the Director of AI at Microsoft for Startups, a move that has raised eyebrows across the tech industry. The layoffs, which began abruptly, reflect Microsoft’s ongoing efforts to reshape its organization amid its AI push—but the decision to let go of even senior leaders in artificial intelligence is sparking concern.

Why did Microsoft lay off 6,000 employees despite AI expansion?

Microsoft said the layoffs are part of broader “organizational changes” and efforts to remain “competitive and agile.” According to company sources and media reports, the layoffs are not performance-related. The tech giant, which has been rapidly integrating AI into nearly all of its services, says the move is aimed at streamlining operations and preparing for the future.

The company previously let go of 10,000 employees in 2023, or about 5% of its workforce. These recent layoffs come just over a year later, affecting various roles globally, including those in engineering, product, marketing, and AI strategy.

Who is Gabriela de Queiroz and why was her layoff a shock?

Gabriela de Queiroz, a well-respected name in the AI and data science community, confirmed her layoff on LinkedIn. With over 15 years of experience in AI strategy and product innovation, her dismissal came as a surprise to many, especially given Microsoft’s strong public stance on leading AI development.

“We were asked to stop work immediately and set an out-of-office [notification]. But I chose to stay a little longer—showing up for meetings, saying goodbye, wrapping up what I could,” she shared online.

Though visibly heartbroken, she expressed optimism for the future.

Live Events

“Am I sad? Absolutely… But I trust that something good will come out of this,” she added.

Her heartfelt post drew widespread attention and support, highlighting the human side of these corporate decisions.

What are employees saying about how the layoffs were handled?

The layoff process was sudden and, for many, emotionally jarring. Carsolina Walton, another former Microsoft employee, recounted being added to a last-minute meeting—only to find herself face-to-face with a stranger delivering the news of her layoff.

“I had a last-minute meeting added to my calendar by my skip… once an unfamiliar face joined the call, I quickly realized I too was a part of the Microsoft layoffs,” she said.

Such stories were echoed by hundreds across X (formerly Twitter) and LinkedIn, where employees expressed confusion, sadness, and frustration over the impersonal nature of the layoffs.

How are tech professionals and the industry reacting?

The tech community reacted strongly, particularly to de Queiroz’s exit. Many saw her role as critical to Microsoft’s AI-first future, and her departure is being viewed as counterintuitive.

“It’s ok to say there isn’t a bright side here,” one user posted. “A company that ballyhooed AI all over town… then fires the director of AI? Makes no sense.”

Another user jokingly asked,

“Did the AI start directing itself?”

These reactions highlight growing concerns that even top talent in emerging fields like AI are no longer secure in the current tech landscape.

What does this mean for Microsoft employees in India?

While Microsoft hasn’t officially confirmed how many Indian employees are affected, the country is likely to feel the impact. Microsoft, which has been operating in India since 1990, currently employs over 20,000 people across 11 cities in roles ranging from R&D to customer service.

An email inquiry sent to Microsoft India by the media went unanswered, and uncertainty remains regarding the extent of the layoffs in its Indian operations.

Is Microsoft betting on AI while cutting human jobs?

Yes, Microsoft is doubling down on AI, even as it reduces its workforce. CEO Satya Nadella has emphasized that the company is positioning itself for an AI-driven future, automating tasks and reorganizing teams to align with these goals. Yet, ironically, the recent Microsoft layoffs include professionals directly involved in AI development.

While the company aims to “free up employees for higher-value work,” critics argue that laying off those already doing high-value work—like AI strategy—sends a conflicting message.

Q1. Why did Microsoft lay off AI director Gabriela de Queiroz in 2025?
Microsoft cited company-wide restructuring, not performance, as the reason.

Q2. How many employees were affected in Microsoft’s 2025 layoffs?
Around 6,000 workers, or 3% of the global workforce, lost their jobs.

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}