According to a report from Bloomberg News, Microsoft is preparing another layoff, this time targeting thousands of workers. The cuts are expected to be announced in early July after the company finishes its fiscal year.
This continues its workforce cut pattern as the company doubles its AI ambitions just a month after Microsoft fired around 6,000 employees.
Earlier this month, the Redmond-based tech giant fired more than 300 workers in what the company calls another round of “organizational change.”
Microsoft Layoffs: Cut thousands of jobs in a $80 billion AI push
The sales team is expected to hit, but cuts are not limited to those, and timing may still change, sources told Bloomberg.
“According to those familiar with the issue, following the end of Microsoft’s fiscal year, the cuts are expected to be announced early next month. The cuts will not affect the sales team alone, and the timing may still change.”
Microsoft is putting money on artificial intelligence and has placed a big bet on its role in Tech’s future. The company is planning to spend $80 billion this fiscal year, most of which is heading towards building and upgrading data centers to support the growing demand for AI services.
Shifts are not separated by Microsoft. Amazon CEO Andy Jassy said on Tuesday that generative AI and autonomous agents will lead to more lean corporate workers in the coming years. In both cases, the message is clear. AI is driving major changes not only to its products but also to its personnel.
Future layoffs will not be limited to sales, and the timing and scope may change, the report said. Microsoft declined to comment.
As of June last year, the company had 228,000 employees. That number could shrink further as the company restructures around AI.
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