Microsoft (MSFT) Integrates AI into Software Engineering Amid Layoffs

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May 18, 2025
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Microsoft (MSFT, Financial) is significantly increasing its use of AI technology in software development, as revealed by a company insider. Jeff Hulse, a Vice President managing around 400 software engineers, recently instructed his team to generate half of their computer code using AI models powered by OpenAI. This move raises the proportion of AI-generated code from 20% to 30%, demonstrating Microsoft's rapid adoption of such technologies.

Recently, a dozen engineers from Hulse's team were laid off as part of Microsoft's broader strategy to cut 6,000 jobs across the company. The layoffs have disproportionately affected engineers, highlighting the company's shift towards leveraging AI to enhance productivity in sales, engineering, and customer support roles. This strategy aligns with Microsoft's message to its corporate clients, promoting AI as a cost-saving measure on workforce expenses.

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I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.