Microsoft may cut more jobs, and middle managers are in the crosshairs

Microsoft co-founder Bill Gates recently said "AI will replace humans for most things." But as we wait to see if that prediction proves accurate, companies will cut jobs and shift priorities in other ways.

According to a recent report by Business Insider, Microsoft is considering more job cuts. The cuts could come as soon as May, according to the outlet's sources.

Middle managers are a focus of the potential cuts. It's said Microsoft wants to increase the ratio of coders who work on projects compared to non-coders.

Microsoft also wants to have more people report to managers, according to the report. That shift would allow Microsoft to manage a similar number of employees with fewer managers.

At this time, it's not known how many jobs could be affected by the cuts.

Microsoft announced a wave of 2,000 performance-based job cuts earlier this year. Those cuts represented less than 1% of Microsoft's workforce. The tech giant had approximately 228,000 employees at the end of June 2024.

Microsoft has made larger cuts in the past, including cutting 10,000 jobs in 2023.

The reported potential cuts could occur as soon as next month, so we will likely have a better idea of how expansive they are soon.

AI replacing jobs

Business Insider's report does not mention AI as a contributing factor to the potential job cuts at Microsoft. But recent comments by Gates could prove prophetic if the cuts happen.

Gates recently said that only three professions are future-proof and protected from being replaced by AI: coders, energy experts, and biologists.

If Microsoft cuts middle management jobs, it could lead to ratios that align better with an emphasis on coding.

Gates left Microsoft's board of directors in 2020, but the company's co-founder reportedly shares advice that is viewed as gospel by higher-ups at Microsoft. A report last year said Gates plays a major role in Microsoft’s AI push.

As AI agents evolve and the capabilities of AI tools expand, companies will likely use those tools to automate processes. They could result in a reduction of jobs or lead to companies shifting the makeup of their respective workforces.