Microsoft is experiencing a dichotomy of layoffs alongside lucrative compensation for AI talent. The tech giant has heavily invested in AI, particularly in its Copilot tool, while also being the largest investor in OpenAI. It encourages employees to use internal AI tools and allows for retention bonuses for those in AI roles. Despite layoffs affecting thousands, Microsoft is still hiring, particularly for AI-related positions, with competitive salaries reported for software engineers and product managers. The company is adapting its workforce to better meet the demands of AI competition.
Microsoft's substantial investment in AI includes billions spent on its flagship Copilot tool and it remains the largest investor in OpenAI, despite some relationship issues.
The company is actively urging its staff to utilize internal AI tools more frequently and has allowed managers to offer retention bonuses to key contributors in AI initiatives.
Microsoft has executed several rounds of layoffs this year—affecting thousands—while focusing on replacing traditional sales staff with roles that better align with AI technologies.
Despite layoffs, Microsoft continues to hire, showing competitive compensation for roles in AI, with software engineers earning up to $284,000 and product managers up to $250,000 in base salary.
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