Layoff-stricken ex-Microsoft employee asserts significant culture shift engendered by AI within the company
In the tech industry, Microsoft has been making significant strides in embracing artificial intelligence (AI) as a core part of its operations. This shift has brought about a transformative change in the company's culture, impacting both employees and the way work is conducted.
In 2025, Microsoft made a bold move by requiring its remaining staff to adopt AI tools and workflows as part of their daily operations. This decision was a turning point for many employees, as it signalled a new era of digital transformation. One such employee, known as "BlackExcellence19" on Reddit, was affected by the layoffs that followed.
The company's AI-driven strategy has led to a dual focus: fostering a growth mindset and learning culture, and streamlining operations for efficiency. Microsoft continues to promote a growth mindset, linking personal passion with its mission to empower the world. At the same time, the rapid AI transformation has triggered workforce changes aimed at preserving margins, including large-scale layoffs of experienced engineers and managers.
This cultural evolution is also reflected in the way work is conducted. For instance, teams are now required to demonstrate how they are integrating AI tools like Microsoft 365 Copilot into their products. One Reddit user, who works on such a team, shared that they use an SWE agent (Software Engineering agent) to generate PRs autonomously.
However, this shift towards AI has not been without its challenges. The employee who was affected by the layoffs lost $30,000 in stock compensation that was part of their original sign-on package. Furthermore, the focus on performance metrics and output has led to a strange feeling for some employees, such as the OP, who work on products that could potentially replace them.
The layoffs were not limited to the M365 Core team, specifically the Copilot Data Platform. In fact, Microsoft laid off approximately 15,000 employees in 2025. Despite advice to learn AI and be part of AI teams, layoffs are still happening due to traditional metrics like PRs and lines of code.
The situation at Microsoft mirrors that of other tech companies, such as JPMC software engineering, where management is obsessed with performance metrics and is pushing people to use AI to increase productivity while layoffs happen. One Reddit user commented that Microsoft is forcing employers to use Copilot for everything.
Despite these challenges, there is a sense of optimism about the future potential of AI. The OP found the Copilot product underwhelming at the time but admitted its future potential is promising. Another user compared the Microsoft situation to the current situation at JPMC software engineering, where AI is reshaping career development through unified approaches to skills development and career pathing.
In conclusion, Microsoft's cultural shift due to AI is characterised by a continued emphasis on a growth mindset, hybrid work and AI-enhanced digital tools, significant layoffs and staff rationalization, and AI-driven career development transformations. This multifaceted change reflects both a commitment to innovation and learning and a hard strategic pivot to align workforce size and capabilities with AI-driven business priorities.
- In 2025, Microsoft mandated its remaining employees to incorporate AI tools for daily work operations, marking a significant shift in the company's digital transformation journey, driven by technology.
- The financial implications of this shift are evident, as the company's focus on productivity and performance metrics led to layoffs of experienced engineers and managers, costing some employees substantial stock compensation.
- Amidst the challenges, the finance sector, particularly JPMC software engineering, is experiencing a similar trend, with AI reshaping career development and business priorities, reflecting the widespread influence of AI in the business market.
