5 Key Lessons From Microsoft Layoffs

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May 16, 2025 12:54 IST

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Professionals will be required to either learn new tech skills that focus on AI, cloud computing, or risk becoming obsolete, cautions Arun Prakash M, founder and CEO of GUVI Geek Network..

what tech professionals can learn from microsoft layoffs

Kindly note the image has been posted only for representational purposes. Photograph: Kind courtesy Vitaly Gariev/Pexels
 

The global technology space has undergone significant transformation in the last few years.

Organisational agility, efficiency and productivity are aspects echoing in all corners of the domain.

With Microsoft laying off 6,000 of its employees in what is being reported as a 3 per cent reduction of its workforce, and the largest reduction since 2023, similar sentiments have been at play here.

But as layoffs become continuous, it casts a grave shadow over techies, 18,000 of whom are reported to be from India only.

While this layoff comes off as an unfortunate turn of events for thousands of tech professionals, this also highlights a trend in the domain.

Since the development of Artificial Intelligence, much of the global digital technology is being shifted to supplement the development of this new-age technology.

In Microsoft, the sentiment remains the same as the company has already laid out that it is looking to make organisational changes to reposition itself for success in a dynamic market.

In simpler terms, Microsoft is going away from its legacy setup to focus more on its future status as a leading name in the AI and Cloud Computing space.

This means numerous roles from the company's older direction become invalid, but at the same time, it opens up a new horizon of opportunity for techies, given their emphasis on upskilling.

Here are five tips for tech professionals to learn from and to decide from what we know about the Microsoft layoffs.

1. Focus more on upskilling

At present, Microsoft, along with the rest of Big Tech, is making significant investments in new-age technologies like AI, cloud computing and others.

To put this into a numerical context, out of Microsoft's $80 billion CapEx, the vast majority will be dedicated towards driving its AI and related services push.

This means that it is becoming increasingly essential for techies, especially those who are in their mid-careers, to upskill in relevant disciplines to sustain their professional ambitions in the digital technology space.

Irrespective of their knowledge in coding, developing or testing, the vast majority of these roles will be completely transformed in the next few years.

Professionals will be required to either learn new tech skills that focus on AI, cloud computing, etc or risk becoming obsolete.

2. Performance over corporate bureaucracy

Rest assured, it is not only Microsoft that is undertaking organisational changes irrespective of hierarchy, but the entire sector.

This sentiment has been voiced by numerous global tech leaders like Elon Musk, Sam Altman and others.

For tech professionals, performance is quickly becoming the only metric of asserting value, not their role in the corporate bureaucracy.

This essentially means tech companies are looking for assets who are capable of completing tasks irrespective of difficulties, not just veterans with a role where no particular value is created to drive the company's focus forward.

3. Go beyond software

This once again integrates an aspect of upskilling.

Contrary to popular belief, upskilling is no longer limited to technological knowledge but also aspects like critical thinking, ideation, problem solving and much more.

At present, the technology space globally is being driven by innovation, something that is being supplemented with critical thinking and related skills that are often put in by younger techies over veterans.

This is where technology professionals must look into, as their valuable experience, coupled with innovation, would make them indispensable to their employers once again.

4. Focus on localisation

The global economy has been reeling with recession scare, and in Silicon Valley, much of which is run by talents from different nationalities, are feeling the heat. But considering this, some professionals can make this an opportunity rather than a challenge.

Individuals from countries like India where the IT industry is booming and is looking to become the next Silicon Valley with considerable support from the government, may look to realise the national vision by putting their efforts into shaping the industry in India.

For instance, India is yet to have its own AI model that can rival ChatGPT or Gemini.

An invisible gold rush in the IT industry is already undergoing, and those with the vision to make the most of it could focus on localising their talent and effort there.

5. Understand the new market

As mentioned before, the global technology market is transforming at a tremendous rate, driven by era-appropriate requirements.

For technology professionals, it is high time to understand the changing dynamics of the market and act accordingly.

The layoffs are quickly becoming the new normal, especially at the Big Tech companies.

However, what it opens up is a window of opportunity for entrepreneurship and diversifying technological excellence across sectors.

If we look deeply, this approach is already gathering pace elsewhere in the world, especially in China, Japan and South Korea, where techies are adopting the gig economy, entrepreneurship and cross-sectoral collaborations.

As a result, this is beginning the democratisation of the global technology domain, shifting the innovation hub from a single spot to the entire world, and techies will only benefit from adapting to this change.

what tech professionals should learn from microsoft layoffs

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