Microsoft is poised to eliminate thousands of positions, notably within its sales department, in a strategic effort to reduce its workforce amid substantial investments in Artificial Intelligence (AI).
Sources familiar with the situation indicate that the announcement regarding these layoffs is expected at the beginning of next month, following the conclusion of Microsoft’s fiscal year. While sales teams will likely be impacted, the layoffs are not limited to this sector, and the timing of the announcement may still shift. These individuals spoke on the condition of anonymity due to the confidential nature of the discussions.
The company has opted not to provide any comments on this matter.
This upcoming round of layoffs follows a previous round in May that affected 6,000 employees, primarily targeting product and engineering roles while leaving customer-facing positions like sales and marketing largely unscathed.
In April, Microsoft informed its workforce about plans to collaborate with third-party firms to manage increased sales of software to small and mid-sized businesses.
The technology giant has emphasized the importance of periodically reevaluating its organizational framework to ensure continued investment in growth. While spending tens of billions on infrastructure such as servers and data centers, company executives have committed to Wall Street, cautioning employees that overall spending in other areas would be kept under control.
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