U.S. tech giant Microsoft recently dismantled its Senior Leadership Team (SLT), a group of executives who directly reported to the CEO and led its vast organization. Instead, it formed a company-wide management body comprising five members, including the Chief Financial Officer (CFO) and Chief People Officer (CPO). Additionally, it created small, horizontal organizations focused on field operations. These horizontal teams enable engineers, researchers, developers, and designers to collaborate directly without navigating complex multi-level reporting structures—a common organizational form in small startups. This shift reflects the reduced need for large teams or organizations as AI becomes deeply integrated into daily workflows. It also aligns with restructuring efforts to enhance efficiency in AI collaboration. CEO Satya Nadella emphasized, “In the AI era, Microsoft’s massive organization has become a significant weakness,” stressing the importance of swift decision-making and action.
AI is reshaping corporate organizational structures and core job roles. Beyond how humans utilize AI, companies are now reorganizing personnel to boost efficiency centered around AI. Some roles are disappearing due to AI replacement, while new roles tailored to the AI era are emerging. Software engineers and designers who previously wrote code are being replaced en masse by AI, but demand for roles supporting AI transitions and organizational restructuring is growing rapidly.
Organizational Restructuring for AI
A notable trend in post-AI restructuring is downsizing. As AI automates many tasks, fewer people are needed, and human roles now focus on managing and overseeing AI-driven work. To keep pace with AI-accelerated technological advancements, companies must minimize decision-making layers and respond agilely. The Wall Street Journal (WSJ) reported, “Businesses are moving away from traditional hierarchical structures, reducing mid-level managers, and reorganizing into smaller, technology-driven teams.”
Meta recently streamlined its organization. On the 20th, local time, it laid off 8,000 employees, representing 10% of its workforce. Unlike performance-based layoffs, this was a structural shift toward AI-centric operations. Simultaneously, 7,000 employees were reassigned to AI cloud infrastructure and internal AI agent teams, while some managers were transitioned to hands-on roles, reducing mid-level management layers.
Rising Job Roles in the AI Era
Despite the push for efficiency and smaller teams, certain roles are seeing sustained demand. A prime example is the ‘Solution Architect,’ who designs how companies adopt AI. They analyze a client’s existing systems, data, security regulations, and workflows to determine which AI models, cloud structures, and departments to prioritize, and how to integrate the entire system. ‘Forward Deployed Engineers (FDEs)’ and ‘AI Deployed Engineers (ADEs)’ implement these AI systems on-site. They identify tasks for AI integration, connect data, adjust prompts, test performance, and ensure practical usability. While demand for engineers who excel at coding has declined, those who engage directly with clients to solve problems are now critical.
Other emerging roles include AI consultants who redesign business processes and organizations for AI integration, and AI security experts addressing cybersecurity threats posed by AI. Business Insider noted, “AI-related hiring surged 130% by late last year compared to early 2020, while overall hiring slowed, exacerbating the imbalance.”
Originally written by: Kang Da-eun
Image credit:
Source: The Chosun Daily
Published on: 25 May 2026
Link to original article: Microsoft, Meta Restructure for AI Efficiency, New Roles
