Microsoft is set to cut thousands of jobs in its sales division, according to a Bloomberg report citing people familiar with the matter. The layoffs, expected to be announced as early as next month, follow Microsoft’s earlier job cuts in May that impacted around 6,000 workers across various departments.
The tech giant is shifting its focus towards artificial intelligence, investing heavily in data centers to support the growing demand for AI tools and services from businesses. Microsoft has allocated a capital expenditure of around $80 billion for the current financial year, with a significant portion going towards expanding its data center infrastructure to alleviate pressure on existing facilities supporting AI services.
While the sales teams are expected to be the most affected, the report notes that the layoffs won’t be limited to them. The final decision on the timing may still be subject to change. As of June last year, Microsoft had approximately 228,000 employees.
Microsoft’s AI Focus
Microsoft’s move to cut jobs in sales while investing in AI reflects the company’s efforts to adapt to the rapidly changing technology landscape. The company is prioritizing investments in data centers and AI research to stay ahead in the market.
