Microsoft to cut thousands of sales jobs amid AI push
What's the story
Microsoft is planning to lay off thousands of employees, especially in its sales division, as per a Bloomberg report.
The decision comes as part of the tech giant's ongoing workforce restructuring and increased investment in artificial intelligence (AI).
The job cuts could be announced as early as next month, after the end of Microsoft's fiscal year.
Broader impact
Sales teams expected to be hit hardest by these layoffs
While the sales teams are expected to be hit hardest by these layoffs, the cuts won't be limited to them.
This round of layoffs comes after a previous round in May that affected some 6,000 employees across various departments.
Since January 2023, the tech giant has laid off over 21,000 employees, as per layoffs.fyi.
Strategic pivot
Microsoft is investing heavily in AI
Microsoft has been increasingly focusing on AI to stay competitive in a rapidly evolving tech landscape.
The company is investing heavily in data centers and AI research to meet the rising demand from businesses adopting these technologies.
According to reports, Microsoft has earmarked around $80 billion for capital expenditure this fiscal year, with a major chunk going toward expanding its data center infrastructure.