Microsoft Readies Major Workforce Reduction
Microsoft is gearing up for a significant reduction in its workforce, targeting thousands of job cuts predominantly within its sales division. This move comes as the tech giant intensifies its focus on artificial intelligence (AI) and restructures its operations to align with evolving business priorities.
Following Previous Layoffs
This upcoming wave of layoffs follows a notable reduction earlier this year, when approximately 6,000 employees were let go in May. The new cuts are expected to be announced soon after the close of Microsoft’s fiscal year, potentially reshaping several teams beyond just sales.
AI Investments Driving Change
With a capital expenditure plan surpassing $80 billion for the current fiscal year, Microsoft is heavily investing in AI infrastructure. Much of this budget is allocated for expanding data centers to address capacity challenges and accelerate AI service capabilities.
The shift towards AI leadership reflects a broader industry trend, where companies are rapidly embedding generative AI technologies to stay competitive. Industry leaders have acknowledged that these advancements will reshape corporate workforces over the coming years, pointing to a leaner, more technology-driven operational model.
Broader Tech Industry Impact
Meanwhile, other tech giants are also preparing for workforce changes tied to AI advancements. For example, Amazon’s CEO recently indicated plans to reduce its corporate headcount as generative AI deployments roll out.
Workforce Size and Outlook
As of June last year, Microsoft employed about 228,000 people. While details of the upcoming layoffs remain fluid, the company is expected to focus efforts on optimizing teams to support its AI ambitions. Sources suggest the reductions may extend beyond sales but specifics have yet to be finalized.
Microsoft has not yet publicly commented on the reported plans.
Note: This article is based on multiple sources and reflects the latest information available regarding Microsoft’s workforce plans and AI investment strategy.
