Microsoft is set to eliminate several thousand positions, primarily within its sales division, as part of a broader effort to restructure its team while ramping up spending on artificial intelligence initiatives.
According to a Bloomberg report, Microsoft is reportedly planning to cut thousands of additional jobs, with a focus on departments such as sales. Citing unnamed insiders, the report suggests the layoffs may be disclosed in early July. Microsoft’s fiscal year 2025 concludes on June 30. When approached for comment, a Microsoft representative stated that there were no updates to share about potential staffing changes.
The technology powerhouse has significantly increased its spending on artificial intelligence, striving to reinforce its dominant position as businesses across sectors race to embed AI into their offerings to stay ahead in the market.
For the current fiscal year, Microsoft has allocated $80 billion in capital spending, largely dedicated to building out data center infrastructure to address capacity challenges tied to its AI operations. According to the report, the job reductions are likely to be revealed in early July, shortly after Microsoft closes out its financial year.
As of June 2024, Microsoft employed a total of 228,000 people, with around 45,000 working in sales and marketing—a figure that remained unchanged from the previous year. This group represents the company’s third-largest workforce segment, following Operations, which accounts for 86,000 employees, and Product Research and Development, with 81,000 staff members.
Amazon CEO Andy Jassy said on Tuesday that the rollout of generative AI and agents will reduce its total corporate workforce in the next few years.
He highlighted how deeply artificial intelligence is woven into Amazon’s wide-ranging ecosystem, pointing out its use “in everything from Alexa to shopping tools and backend processes.” He described generative AI as a transformative breakthrough—one that holds the potential to unlock unprecedented opportunities for both businesses and everyday users.