Microsoft planning to cut thousands more jobs, targeting sales teams

Microsoft Corp. is preparing to cut thousands of jobs - primarily in its sales division - as part of a broader restructuring effort, as per media reports.

This move aims to rein in costs while aggressively investing in artificial intelligence, according to people familiar with the company's plans, the report added.

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The layoffs, which are expected to be announced early next month, will follow the end of Microsoft's fiscal year in June. While the sales division is set to be the most affected, the cuts will not be limited to that department, as per sources, who requested anonymity because the matter is not yet public, the report added. They also cautioned the final timing could shift.

The looming job cuts come just weeks after Microsoft laid off 6,000 employees in May, targeting product and engineering teams. That round largely spared customer-facing roles like sales and marketing, but this time around, those same roles were expected to be in the line of fire.

In April, Microsoft informed staff of a plan to outsource more of its sales efforts for small and mid-sized business to third-party firms. These moves are part of the company's broader strategy to optimize internal operations while maintaining its aggressive momentum in AI development.

As of the end of June 2024, Microsoft had 228,000 employees, with about 45,000 in sales and marketing roles. The company historically undertakes organizational changes and team restructures around the end of its fiscal year, and this year appears to be no exception.

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