Microsoft AI Director Gabriela de Queiroz’s emotional note after she along with roughly 6,000 others were laid off recently is a pointer to the fact that the impact of technology on jobs is pretty uniform: it doesn’t differentiate between top-tier and bottom-tier employees. In fact, Microsoft’s job cuts fell hardest on the people who built the company’s products, showing that even software developers are at risk in the age of artificial intelligence (AI). The job cuts were expected as Microsoft and its rivals are making steep investments in AI and are scrutinising costs and reprioritising budgets. So tools capable of writing or analysing code are automating elements of software development previously done by engineers typing away on keyboards. At Microsoft, as much as 30% of some projects’ code is now written by AI.

Microsoft CEO Satya Nadella on Sunday acknowledged the emotional toll of the layoffs, calling them a “realignment” rather than a reflection of employee talent, but insisted that the cuts are part of a forward-looking reset rather than a sign of retreat. For better or worse, the meeting concluded that in this AI-powered future, no role is sacred, but there’s serious opportunity for those ready to ride the wave. Microsoft has also taken pains to clear the fact that this shake-up involving 3% of its workforce is all about strategy, and not shortcomings. The trend is thus unmistakable. Global tech giants are reducing the layers of management, and it’s a matter of time that the Indian information technology sector, too, follows suit. Operations are bound to get flatter and only those mid-level staff who are AI-savvy will be better equipped to hold on to their jobs. For years, coding has been hounded as one of the top hard skills all students should master, especially if they want a high-paying career in tech. Even a few years ago there was a boom in the tech industry, where companies were hiring software engineers left, right, and centre. Not only were they well-paid, but their jobs also seemed pretty safe at the time.

However, AI has radically changed the game in just a short period of time and rapidly replaced the tasks of some coders. According to LinkedIn’s analysis of the fastest-growing skills for 2025, AI literacy takes home the top prize — and it’s not surprising considering that companies are desperate for workers with AI skills. India’s AI sector is projected to see substantial growth, with job openings expected to exceed 2.3 million by 2027. However, the available AI talent pool is expected to be around 1.2 million, leaving a significant gap of over a million skilled workers.

To bridge this gap and ensure India’s AI sector can thrive, there’s a critical need for upskilling and reskilling programmes to enhance the existing workforce’s capabilities. As generative AI becomes further embedded in the workplace, Indian companies must make it easier to build the technical knowledge and skills that have historically excluded otherwise qualified workers. Companies will need to invest in substantial upskilling and education efforts to prepare their employees for the AI-driven economy. That’s the only way to level the playing field that comes with harnessing AI’s potential. Just the other day, Nvidia founder and CEO Jensen Huang served up a blunt take on the job market as AI permeates society. “You will not lose your job to AI, but will lose it to someone who uses it,” Huang said. Indian companies and employees would do well to listen to him.