Microsoft Plans Thousands of Job Cuts as AI Investments Rise
Microsoft is planning to cut thousands of jobs, particularly in its sales division, as the tech giant streamlines its workforce amid increased investments in artificial intelligence, Bloomberg News reported on Wednesday, citing people familiar with the matter.
The latest layoffs follow Microsoft’s previous round of job cuts in May, which affected about 6,000 employees. The tech giant has been ramping up its investments in AI, aiming to solidify its leadership as companies across industries accelerate the integration of AI into their products and services to maintain a competitive edge.
Amazon CEO Andy Jassy recently stated that the rollout of generative AI and agents will reduce its total corporate workforce in the next few years, echoing similar trends in the industry. Microsoft has planned a capital expenditure of $80 billion this fiscal year, with most of it aimed at expanding data centers to ease capacity bottlenecks for AI services.
The layoffs are expected to be announced early next month, following the end of Microsoft’s fiscal year. The job cuts will not exclusively affect the sales teams, and the timing could still change. Microsoft had 228,000 workers as of June last year.
Microsoft declined to comment on the report. The news comes as tech companies continue to adapt to the changing landscape driven by AI advancements.
