Microsoft Plans Job Cuts, Focusing on Sales, Amid AI Spending

Post by : Meena Ariff

Photo: Reuters

Microsoft is planning to lay off thousands of employees, especially in its sales department, as part of the company’s effort to reduce its workforce. This decision comes after Microsoft has spent large amounts of money on new technology.

The job cuts are expected to be announced next month, after Microsoft’s financial year ends. The exact number of layoffs could still change. These new layoffs follow a previous round in May when the company let go of 6,000 workers, mostly in product and engineering roles. Sales and marketing positions were mostly spared at that time.

Earlier this year, Microsoft told employees it would work with third-party companies to sell more software to smaller customers.

Microsoft said it frequently reviews its structure to ensure it is investing in the right areas for growth. The company has been spending billions of dollars on building servers and data centers. At the same time, the company has promised to control spending in other areas.

At the end of June 2024, Microsoft employed 228,000 people, with 45,000 working in sales and marketing. The company often makes changes to its teams and announces new plans at the end of its financial year, which finishes in June.

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