Microsoft’s AI-Powered Layoffs Axe Top Execs and Loyal Employees: “No Warning, Just Algorithms”

Tech News

05/22/2025 10:09:29 AM

Microsoft’s latest round of layoffs, cutting 3% of its global workforce (nearly 6.000 jobs), has sparked outrage after high-profile casualties included AI chief Gabriela de Queiroz and a 25-year veteran employee known for rarely taking vacations. The cuts, driven by an algorithm, left staff blindsided—with one employee reportedly fired on his 48th birthday.

Microsoft’s AI-Powered Layoffs Axe Top Execs and Loyal Employees: “No Warning, Just Algorithms”

De Queiroz confirmed her abrupt termination on social media, writing she was “asked to leave immediately” but stayed in a final meeting to say goodbye. Meanwhile, the veteran’s wife revealed on Reddit that her husband—praised for loyalty and performance—was flagged by AI tools with no human oversight.

While Microsoft claims the layoffs target “redundant roles, not performance,” critics argue the algorithm ignores experience and institutional knowledge. The company’s recent earnings report showed strong growth in cloud and AI sectors, raising questions about the need for cuts. In 2023. Microsoft blamed COVID-19 for layoffs; now, it’s outsourcing tough decisions to code.

The move mirrors Elon Musk’s rumored push for AI-driven workforce reductions, which backfired at Tesla due to over-firing and rehiring costs. Employees warn the trend risks losing irreplaceable talent: “Algorithms don’t care about your 25 years,” one anonymous source said.

Microsoft has not disclosed how the algorithm selects employees or whether managers reviewed decisions. No U.S. release date for the layoff system has been announced, but workers globally are bracing—and updating their resumes.

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