Microsoft is reportedly preparing to cut thousands of jobs once again, with many of the layoffs expected to affect its sales teams. The job cuts are likely to be announced in early July, shortly after the company’s fiscal year ends, as part of the company’s latest move to trim its workforce amid heavy spending on artificial intelligence. However, the final decision and exact timing could still change.
According to Bloomberg, the layoffs won’t only impact sales departments. Other teams could also be affected as part of the layoff. In May, Microsoft had already laid off around 6,000 employees, mostly from product and engineering teams. That round mostly spared customer-facing roles such as sales and marketing. In April, Microsoft had informed its employees that it would rely more on outside companies to handle software sales to small and medium-sized customers.
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The tech giant has said it regularly reviews its organisational structure to ensure that it is investing for growth. With the company investing heavily in artificial intelligence, including spending billions on servers and data centers, it’s looking to save money in other parts.
Microsoft had around 2,28,000 employees at the end of June 2024, with 45,000 of them working in sales and marketing roles, according to the report. The company often announces major organisational changes or restructuring around the end of its fiscal year.
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Microsoft plans highlight how even global tech giants are restructuring their workforces to manage costs while accelerating their push into AI. In a similar move, Amazon CEO Andy Jassy recently informed employees that the company plans to reduce its workforce over the coming years. This strategy is part of Amazon’s broader effort to integrate AI across operations and enhance overall efficiency.
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