In simpler terms, the statement made by Microsoft‘s co-founder, Bill Gates, suggests that AI (Artificial Intelligence) may eventually take over many tasks currently performed by humans. However, until we can verify this prediction, businesses might adjust their workforce or focus on different areas.
Based on a recent report from Business Insider, there are indications that Microsoft might be planning further layoffs. These potential redundancies could reportedly take effect as early as May, according to their sources.
In consideration for possible reductions, middle management roles may be targeted. There’s talk that Microsoft aims to enhance the proportion of developers working on projects relative to those who aren’t developers.
According to the report, Microsoft aims for an increased number of employees reporting directly to managers, enabling them to oversee approximately the same amount of staff with a reduced number of supervisors.
At this time, it’s not known how many jobs could be affected by the cuts.
Earlier this year, Microsoft disclosed plans to let go of about 2,000 positions due to performance reasons. This accounted for less than 1% of their total workforce, which was around 228,000 employees at the close of June 2024.
Microsoft has made larger cuts in the past, including cutting 10,000 jobs in 2023.
It’s possible that the proposed reductions might take effect within the next month, which means we should gain clarity about their extent shortly.
AI replacing jobs
According to Business Insider’s report, AI isn’t listed as a reason for possible job reductions at Microsoft. However, remarks made by Gates might come true if layoffs indeed occur.
In his latest statement, Gates pointed out that there are just three career paths he believes will remain resilient against automation by artificial intelligence: software developers, professionals in the energy sector, and biologists.
Reducing middle management positions at Microsoft might result in more balanced staff-to-coding ratio, highlighting the importance of coding.
In 2020, Bill Gates stepped down from Microsoft’s board of directors, but his counsel continues to hold significant weight within the company leadership. Last year’s reports suggested that Gates maintains a substantial influence over Microsoft’s artificial intelligence initiatives.
With advancements in AI technology and the growing abilities of AI-powered tools, businesses may increasingly rely on these tools to streamline their operations. This automation could potentially diminish some job roles or cause businesses to restructure their workforce composition.
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2025-04-10 16:09