The pace of AI taking over the industry has people worried, especially those who are at risk of the technology taking over their jobs. Microsoft and Google are some of the big names that have pulled the plug on thousands of job roles, just to get them replaced with AI in recent months. And now, a new report claims one of these tech giants had planned for these job cuts right under the noses of their employees. 

The AI Job Effect 

Bloomberg this week has done the analysis for the 6,000 employee layoff at Microsoft recently, where it noticed that 40 percent of these job cuts were focused on software engineers. But things get a lot scarier when you realise that the company had asked these 40 percent of engineers to start using AI tools for coding more aggressively. 

Once the AI systems had shown human-level results, Microsoft reportedly decided to replace the AI with the engineers, which apparently helps them cut the costs on employee hiring. 

Another report by The Information cites a similar trend, and talks about Microsoft forcing its engineers to rely on OpenAI-powered chatbots to generate 50 percent of their code. Most of these companies are talking highly about the power of AI and its ability to generate code for their products and business. 

Microsoft seems to have trodden in the same dystopian path that could now become a reality in many more sectors. Experts have cooled down the hype around AI taking away jobs but instances like these suggest the threat is very much there, especially if you are involved in business where AI becomes a handy tool. 

The creators business is another target for AI systems and companies like Adobe could easily have its employees replaced with AI if it finds their levels matching the existing standards or more. 

Google showed its pace in AI development at the I/O 2025 earlier this week with models like Veo that can now generate videos with audio in the background using basic text prompts. It is obviously clear that nobody is safe in the AI era and it is time people co-exist with the technology rather than wait to be replaced with them.