Shane Snider, Senior Writer, InformationWeekMay 15, 20252 Min ReadBYphoto via Alamy StockMicrosoft on Tuesday started layoffs of almost 3% of its global workforce, or about 6,000 employees across various departments. Many were shocked that the layoffs included the company’s director of artificial intelligence, Gabriela de Queiroz.De Queiroz took to LinkedIn to share the news in a lengthy post. “Bittersweet news to share: I was impacted by Microsoft’s latest round of layoffs. Was I expecting it? Maybe. These days no matter how hard you work, how much you advocate for your company, or how much visibility to bring -- none of that makes you immune to restructuring,” she wrote.Such a high-level impact in the AI department shocked many commenters -- considering Microsoft has poured billions of dollars into its AI ambitions, including billion earmarked for AI initiatives in 2025 alone. “If they are willing to cut the director of AI, what hope do any of us have?” one Reddit commenter asked.Microsoft posted strong financial results in its most recent quarter, with its revenue up 13% at billion. But even as revenues rise, companies are looking to offset huge capital outlays for emerging technologies like GenAI. Macroeconomic uncertainty is fueling the cost-cutting effort as well.Tuesday’s layoffs marked the largest Microsoft cuts since 2023, when the company cut 10,000 workers.Related:Bloomberg reports that the layoffs targeted layers of management. About 17% of the cut personnel were classified as managers. Product management and technical program management roles accounted for about 600 of the cuts at Microsoft’s Washington workforce, or about 30% of layoffs, according to the report.What CIOs Should KnowPradeep Sanyal, AI and data leader for IT consultancy Capgemini and a former CIO, says IT leaders should pay close attention and recognize the shifts in market-wide AI strategies.“CIOs should take note, though not necessarily panic,” he tells InformationWeek in an e-mail interview. “Micosoft’s layoff of a high-profile AI leader, even amid massive AI investment, signals a few things …”Sanyal says the companies are restructuring as they shift from experimentation to “operationalization.” The companies are cutting costs by reducing layers and chopping roles not directly tied to revenue generation, he says.Such a change in leadership at a top vendor will likely have implications for customers. “Even if Microsoft’s commitment to AI is strong, sudden leadership exits can disrupt both internal continuity and external partnerships. CIOs betting big on Microsoft AI should press for visibility into roadmap ownership and product stewardship.”Related:The high-profile job cut paints a picture of AI volatility, Sanyal says.“This is a canary moment. When even top-tier AI leaders are not immune, it highlights how volatile the AI labor market is, both inside and outside vendor walls. Enterprises need strong internal AI capability, not just reliance on hyperscalers.”He adds, “In short … Yes, be concerned, but as a strategic signal rather than a tactical red flag. It is a reminder to diversify partnerships, own your AIU vision, and stay nimble as the industry reshapes around the next wave of transformation.About the AuthorShane SniderSenior Writer, InformationWeekShane Snider is a veteran journalist with more than 20 years of industry experience. He started his career as a general assignment reporter and has covered government, business, education, technology and much more. He was a reporter for the Triangle Business Journal, Raleigh News and Observer and most recently a tech reporter for CRN. He was also a top wedding photographer for many years, traveling across the country and around the world. He lives in Raleigh with his wife and two children.See more from Shane SniderWebinarsMore WebinarsReportsMore ReportsNever Miss a Beat: Get a snapshot of the issues affecting the IT industry straight to your inbox.SIGN-UPYou May Also Like #microsoft #lays #off #including #director