Microsoft is set to eliminate thousands of positions, particularly in its sales division, as the company continues to streamline its operations and invest heavily in artificial intelligence (AI), according to a Bloomberg News report citing sources familiar with the matter. This latest round of layoffs follows previous job cuts in May that affected approximately 6,000 employees.
The tech giant has been ramping up its AI investments, aiming to maintain its leadership position as companies across various industries accelerate their integration of AI into products and services to remain competitive. Amazon CEO Andy Jassy recently echoed this trend, stating that the implementation of generative AI and agents would likely reduce Amazon’s corporate workforce in the coming years.
Microsoft’s aggressive AI investment strategy includes a planned capital expenditure of $80 billion for the current fiscal year, with the majority allocated to expanding data centers to alleviate capacity constraints for AI services. The layoffs are expected to be announced early next month, following the close of Microsoft’s fiscal year, although the exact timing may still be subject to change.
While the job cuts are not limited to sales teams, they are expected to be significantly impacted. Microsoft had a workforce of 228,000 as of June last year. The company declined to comment on the report. The potential impact on Microsoft’s operations in Ireland remains unclear at this time.
The move reflects a broader industry trend where tech companies are balancing workforce optimization with significant investments in emerging technologies like AI. As Microsoft continues to prioritize AI development, the company is likely to face ongoing challenges in managing its workforce while maintaining its competitive edge in the rapidly evolving tech landscape.
