Microsoft Plans Massive Layoffs Amid $80 Billion AI Investment Push

Microsoft planning thousands of job cuts aimed at salespeople, Bloomberg News reports

June 18 (Reuters) - Microsoft (MSFT.O), opens new tab is planning to cut thousands of jobs, particularly in sales, as part of a broader effort to streamline its workforce while ramping up investments in artificial intelligence, Bloomberg News reported on Wednesday. The layoffs are expected to be announced early next month, following the end of the tech giant's fiscal year, the report said, citing people familiar with the matter. Microsoft did not immediately respond to a Reuters request for comment. Reporting by Harshita Mary Varghese in Bengaluru; Editing by Alan Barona Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:World at Work

Microsoft to lay off thousands in July, but don't worry, AI's getting $80 billion

In context: There's been plenty of talk about machines displacing human workers in the AI Age, mainly focusing on direct replacements - computers taking over tasks like design and programming. Meanwhile, spending on AI infrastructure soars as investment in human skills steadily declines. Bloomberg reports that Microsoft is preparing to lay off thousands of workers next month, with most of the cuts expected to hit the company's sales and customer service divisions. It's a jarring move but not an unfamiliar one in tech. What stands out this time is what Microsoft is doing with the money it's saving: pumping an estimated $80 billion into AI infrastructure over the next fiscal year. That number isn't a typo. As Microsoft reshapes its workforce, it's reshaping its balance sheet, too. It's laying off human employees while building new homes for silicon-based replacements - in hyperscale data centers, GPUs, and power-hungry server farms. Microsoft has not explicitly linked the layoffs to AI, but the connection is increasingly difficult to ignore. The company is investing heavily in machine learning capabilities across its entire product line, from Azure to Office. Its partnership with OpenAI and the widespread deployment of Copilot reflect a strategic pivot away from labor-intensive workflows and toward automated solutions. Despite the scale of this shift, Microsoft has offered little public indication that large-scale retraining or internal upskilling efforts are part of its AI strategy. The company clearly has the resources to help employees adapt to an AI-centric future, yet such initiatives are largely absent from its announcements and disclosures. The emphasis so far has been on infrastructure, partnerships, and AI product rollouts - not on preparing its broader workforce for the changes those investments will bring. This approach reflects a broader trend across the tech sector. Companies including Amazon, Duolingo, and Dropbox have all cited AI-driven efficiency gains when announcing workforce reductions. These moves often emphasize shareholder value and operational agility, even as they diminish opportunities for employees to transition into new roles within the organization. Microsoft plans to lay off thousands globally in the coming weeks. While the company has not disclosed exact figures, reports suggest a significant impact on customer-facing teams. These cuts underscore the shift away from labor-intensive roles as Microsoft pivots toward automation and AI-driven services. The contrast is stark: AI receives billions in dedicated capital, while workers get severance packages and uncertain futures. Microsoft isn't just betting on artificial intelligence - it's actively reorganizing its operations around it. This strategy may pay off in the long term, but it highlights a widening gap between investment in automation and support for displaced employees.

Microsoft reportedly set to cut thousands of jobs, with sales roles particularly at risk

Over 6,000 workers have already lost their jobs this calendar year Microsoft is preparing to cut thousands of jobs as part of its ongoing cost-cutting shakeup as the company continues to spend big on AI. A new Bloomberg report says if confirmed, the layoffs could be announced in early July after the company's fourth quarter and fiscal year end on June 30, 2025. Sales teams could be the worst affected, but the redundancies could span other departments as Microsoft looks to reduce employment-related expenses. The company has already cut thousands of workers off in these post-pandemic years. In May 2025, it cut 6,000 of its workers, equating to around 3% of its roughly 228,000 headcount, in an effort to reduce inefficiencies by removing middle management tiers. A further 305 workers lost their jobs this month, with 14,000 roles affected in 2023 and 2024. In April 2025, Microsoft said it would outsource sales to small and mid-sized customers to third-party firms - an indication of the changes believed to be coming as soon as next month. Despite widespread job losses, Microsoft continues to perform well financially. Last quarter, it reported a 13% increase in revenue to $70.1 billion. It currently holds the title of the world's most valuable company, with a market cap of $3.569 trillion. At the time, CFO Amy Hood stated that overall company headcount was 2% up year-over-year, but slightly down quarter-over-quarter, suggesting constant fluctuations. TechRadar Pro has asked Microsoft to confirm plans to lay off workers after the current quarter draws to a close, but we did not receive an immediate response. While highly disappointing for the company's workers, Microsoft employees aren't alone in facing job uncertainty. Key rivals like Amazon and Google have also been making regular adjustments to their headcounts to optimize costs and output.

Microsoft is planning to lay off thousands of employees in July

Thousands of Microsoft sales employees are expected to be laid off next month, according to a new report -- during a year in which the company invested heavily in AI. The software giant is looking to make cuts at the end of its fiscal year in July, Bloomberg reported, citing unnamed sources familiar with the matter. The cuts are expected to hit sales departments heavily, but not exclusively. In June 2024, Microsoft had 45,000 employees in sales and marketing. Hints first came in March, when the company axed almost 2,000 workers for performance reasons. In April, the writing was on the wall for the sales department: Bloomberg reported Microsoft would rely more on third-party firms to sell to small and mid-sized clients. A month later, it laid off almost 7,000 employees, or 3% of its entire workforce, with cuts coming mostly from product and engineering positions. At that point, Microsoft said it was working to reduce layers of management and adjust its structure amid ongoing platform shifts. Microsoft stock hit an intraday record just two weeks ago, on June 5, its highest point since 2024. That followed a series of announcements that signaled how deeply AI is baked into the company's business. Earlier this year, Microsoft committed to spending $80 billion in fiscal 2025 -- most of it on AI-enabled data centers. That's a figure that suggests CEO Satya Nadella sees AI as Microsoft's cloud moment all over again. And the market seems to agree. The marketing department, or what's left of it, might not.

Microsoft reportedly planning new round of layoffs with sales roles likely to be hit - SiliconANGLE

Microsoft reportedly planning new round of layoffs with sales roles likely to be hit Microsoft Corp. is reportedly planning to lay off several thousand employees next month, in what will be the latest round of job cuts in tech amid changing markets and the rise of artificial intelligence. Bloomberg, referencing people familiar with the matter, says that the cuts are currently planned to be timed after the end of Microsoft's fiscal year which ends June 30, though the timing may change. The cuts are expected to particularly impact the company's sales teams, although they won't be limited to that division The new layoffs, if they happen, will be the second major round of layoffs by Microsoft this year, after the company laid off around 6,000 people, or 3% of its workforce, in May. As of June, Microsoft reportedly has 228,000 workers, with 45,000 of them working in sales and marketing. If and when the job cuts happen, it won't be a complete surprise that they will primarily target employees in sales, as Microsoft Chief Commercial Officer Judson Althoff told employees in April that the company planned to use third-party firms to handle more sales of software to small and mid-size customers. Althoff also said at the time that Microsoft's in-house sellers will also be expected to offer a wider array of products rather than having narrow specializations. While Microsoft has not commented on the report that it was planning new layoffs, a company spokesperson, in a way, already described what Microsoft's plans were back in April. "We are evolving the commercial solution areas within our sales organization to better reflect the era of AI and support the growth of our customers and partners," the Microsoft spokesperson said. "This evolution reflects the shift in how customers and partners are buying and will better serve their needs." Microsoft isn't the first tech company to announce layoffs this year and it won't be the last, as various firms adjust their employee mix as AI reshapes customer services, sales, development and various other sectors. Put more simply, AI is hitting a tipping point where it is now replacing low-level employees. Other companies that have announced job cuts this year include Autodesk Inc. - 1,350 employees in February; in April - Google LLC - several hundred employees, Meta Platforms Inc. - more than 100 and Intel Corp. - more than 20,000; and CrowdStrike Holdings Inc. - around 500 in May. More recently, Amazon.com Inc. Chief Executive Officer Andy Jassy said that his company's workforce is likely going to become much smaller in the future as more tasks are performed by generative artificial intelligence tools and AI agents. In a memo to employees, Jassy said the company expects it will need "fewer people doing some of the jobs that are being done today and more people doing other types of jobs". He added that it's difficult to forecast where this will net out over time, though he said he's almost certain that AI will ultimately "reduce our total corporate workforce." To his credit, Jassy has been candid about the impact of AI on Amazon's workforce. As AI continues to climb a J-curve in technological advancement, more companies, not just in tech, will likely be forced to make similar decisions.

Microsoft to axe 'thousands' of its sales staff, Bloomberg reports

More job cuts loom over Microsoft, which announced mass layoffs affecting 6,000 just last month. Microsoft is planning on cutting "thousands" of jobs, this time, largely aiming at its sales staff, sources told Bloomberg. The layoffs, which could include employees from other departments, are expected to be announced early next month, following the end of Microsoft's fiscal year. It is unknown how many of Microsoft's employees in Ireland will be affected. According to the company's website, it currently employs more than 3,500 people in its Dublin and Belfast offices. SiliconRepublic.com has reached out to Microsoft for clarification into the matter. The financial publication Bloomberg links these job cuts to Microsoft's heavy investments into artificial intelligence. The company is set to spend around $80bn in just this fiscal year to build AI-enabled data centres and deploy AI and cloud-based applications worldwide. Moreover, according to its latest Work Trend Index, Microsoft sees companies that are "AI-operated but human led" as those that will generate value faster. The company has been axing thousands of its employees over recent years. Just last month, Microsoft announced that it would be laying off 6,000 employees worldwide. That came less than a year after 650 employees were fired at the company's gaming division. While earlier this year, Business Insider reported that Microsoft was making performance-based cuts, with hundreds affected by the move. The company fired 10,000 employees at the start of 2023, followed by laying off 1,900 in its Activision Blizzard and Xbox divisions in 2024. Months later, it fired around 1,000 staff members, including in mixed reality, Azure and Mission Engineering. The past two years have also had some of the lowest rates of hiring at Microsoft in nearly a decade. Microsoft made more than $70bn in revenue in its last quarter ending this April. On the earnings call, company CFO Amy Hood hinted at reducing Microsoft's management layers. "We continue to focus on building high-performing teams and increasing our agility by reducing layers with fewer managers," she said at the time. Don't miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic's digest of need-to-know sci-tech news.

Microsoft to Reduce Sales Workforce as AI Spending Grows

Microsoft is preparing to cut thousands of jobs again this year, mainly affecting its sales department. According to anonymous sources, the company is expected to announce this new round of layoffs in early July 2025. While other areas within the company will also see reductions, sales roles are the primary focus this time. Earlier in the year, Microsoft already reduced its workforce by about 3 percent, which translated to roughly 6,000 positions. Those cuts mostly impacted product development and engineering teams, with very few layoffs in sales or marketing. The new layoffs indicate a shift in strategy, as Microsoft looks to outsource more of its software sales, particularly when it comes to small and medium-sized businesses. Microsoft's increased investment in artificial intelligence and other emerging technologies has increased its overall spending. To manage these costs, the company is cutting jobs in other departments. As of June 2024, Microsoft employed around 228,000 people globally, with approximately 45,000 working in sales and marketing. The company has not commented publicly on the upcoming job cuts, but sources suggest the layoffs will number in the thousands. This move fits into a broader trend where large tech companies are streamlining sales operations by relying more on third-party vendors. Outsourcing sales can reduce operational costs and provide flexibility, especially for reaching small business markets. However, it also results in job losses for in-house sales staff. Microsoft's approach contrasts with the earlier round of layoffs that targeted product and development teams more heavily. The shift to sales-focused cuts reflects the company's evolving business priorities as it reallocates resources towards AI development and innovation. Source: bloomberg

Microsoft planning thousands more job cuts aimed at salespeople

(Bloomberg) -- Microsoft Corp. is planning to ax thousands of jobs, particularly in sales, as part of the company's latest move to trim its workforce amid heavy spending on artificial intelligence. The cuts are expected to be announced early next month, following the end of Microsoft's fiscal year, according to people familiar with the matter. The reductions won't exclusively affect sales teams, and the timing could still change, said the people, who requested anonymity to discuss a private matter. The company declined to comment. The terminations would follow a previous round of layoffs in May that hit 6,000 people and fell hardest on product and engineering positions, largely sparing customer-facing roles like sales and marketing. In April, the company told employees it planned to use third-party firms to handle more sales of software to small and mid-size customers. Microsoft has said it regularly reevaluates the organizational structure to make sure it's investing for growth. As the company spends tens of billions of dollars on servers and data centers, executives have pledged to Wall Street, and warned employees, that it would keep a lid on spending in other areas. The company had 228,000 workers at the end of June 2024, 45,000 of them in sales and marketing. Microsoft often restructures teams and announces other changes near the end of its fiscal year, which closes in June.

Microsoft is preparing to lay off thousands

Microsoft is preparing to enact thousands of layoffs in July 2025 according to Bloomberg, primarily affecting sales and customer service divisions, while concurrently investing an estimated $80 billion into artificial intelligence infrastructure over the next fiscal year. This substantial investment signals a strategic redirection of company resources. Microsoft has not explicitly stated a link between the impending workforce reductions and its extensive AI investments. Nevertheless, the alignment of these two distinct actions, a reduction in human capital alongside a significant increase in AI infrastructure spending, suggests an internal operational realignment. The company is actively focusing on enhancing its machine learning capabilities across its entire product portfolio, including its Azure cloud services and Office suite. This strategic direction, exemplified by its collaboration with OpenAI and the widespread implementation of Copilot, indicates a deliberate shift away from labor-intensive operational models toward automated solutions. Despite the pronounced organizational shift, Microsoft has provided minimal public indication regarding large-scale retraining programs or internal upskilling initiatives for its employees. This approach contrasts with the company's substantial financial capacity to facilitate employee adaptation to an AI-centric operational environment. The primary emphasis of Microsoft's public announcements and disclosures has centered on infrastructure development, external partnerships, and the launch of AI products, rather than on preparing its broader workforce for the transformative effects of these investments. Meta layoffs spark outrage: "Zuck doesn't care about his employees" This trend extends beyond Microsoft, reflecting a broader pattern within the technology sector. Several prominent companies, including Amazon, Duolingo, and Dropbox, have cited efficiency gains attributed to AI as a rationale for implementing workforce reductions. These corporate decisions often prioritize shareholder value and operational agility, frequently diminishing opportunities for existing employees to transition into new roles within their respective organizations.

Microsoft Planning Thousands More Job Cuts Aimed at Salespeople

Microsoft is planning to axe thousands of jobs, particularly in sales, as part of the company's latest move to trim its workforce amid heavy spending on Artificial Intelligence (AI). The cuts are expected to be announced early next month, following the end of Microsoft's fiscal year, according to people familiar with the matter. The reductions won't exclusively affect sales teams, and the timing could still change, said the people, who requested anonymity to discuss a private matter. The company declined to comment. The terminations would follow a previous round of layoffs in May that hit 6,000 people and fell hardest on product and engineering positions, largely sparing customer-facing roles like sales and marketing. In April, the company told employees it planned to use third-party firms to handle more sales of software to small and mid-size customers. Microsoft has said it regularly reevaluates the organisational structure to make sure it's investing for growth. As the company spends tens of billions of dollars on servers and data centers, executives have pledged to Wall Street, and warned employees, that it would keep a lid on spending in other areas. © 2025 Bloomberg LP

Microsoft planning thousands more job cuts aimed at salespeople

Microsoft is reportedly planning to eliminate thousands of jobs, primarily impacting its sales division, as part of ongoing cost-cutting measures amidst substantial investments in artificial intelligence. The announcement is expected in early July, following the close of the company's fiscal year. These terminations follow previous layoffs in May and a shift towards using third-party firms for some sales operations.Microsoft Corp. is planning to ax thousands of jobs, particularly in sales, as part of the company's latest move to trim its workforce amid heavy spending on artificial intelligence. The cuts are expected to be announced early next month, following the end of Microsoft's fiscal year, according to people familiar with the matter. The reductions won't exclusively affect sales teams, and the timing could still change, said the people, who requested anonymity to discuss a private matter. The company declined to comment. The terminations would follow a previous round of layoffs in May that hit 6,000 people and fell hardest on product and engineering positions, largely sparing customer-facing roles like sales and marketing. In April, the company told employees it planned to use third-party firms to handle more sales of software to small and mid-size customers. Microsoft has said it regularly reevaluates the organizational structure to make sure it's investing for growth. As the company spends tens of billions of dollars on servers and data centers, executives have pledged to Wall Street, and warned employees, that it would keep a lid on spending in other areas. For more: Microsoft Layoffs Hit Coders Hardest With AI Costs on the Rise The company had 228,000 workers at the end of June 2024, 45,000 of them in sales and marketing. Microsoft often restructures teams and announces other changes near the end of its fiscal year, which closes in June.

Microsoft layoffs July 2025: Company set to fire more staff after sacking 6,000 in May - these positions to be affected

Microsoft is once again planning to reduce thousands of jobs in July as the technology giant continues restructuring along with huge AI investments, as per a report. According to Bloomberg, the company is expected to announce the layoffs by early next month, which would also mark the end of Microsoft's fiscal year and would start the new fiscal year. The firm's upcoming job elimination will mainly target the sales division and also other customer-facing roles, as per the report. The tech giant's sales and marketing division employs about 45,000 of Microsoft's 228,000 total workforce as of June 2024, according to Bloomberg. ALSO READ: Israel's deadly trap: How top Iranian military chiefs were lured and eliminated -- including the Army chief Microsoft had already indicated this shift in April, as the company had announced plans to use third-party firms to handle more software sales to small and midsized customers, according to the report. The July layoffs will be the company's third major workforce reduction this year, following 6,000 job eliminations in May and more than 300 additional cuts just weeks later, as per Bloomberg. The previous rounds of job cuts had affected the roles of software engineers and product developers, according to the report. The timing of the latest cuts shows that the technology giant follows a pattern, as Microsoft often announces organisational changes toward the end of its fiscal year, according to TOI. The IT firm had previously cut 10,000 positions in January 2023 after pandemic-driven hiring and made additional reductions to its video game division following the Activision Blizzard acquisition, reported TOI. Microsoft's job reduction comes amid the broader challenge facing tech companies as they balance AI investments with operational efficiency, as per the report. The IT giant has allocated about $80 billion for data center spending this fiscal year, while executives have pledged to Wall Street to control costs in other areas, reported TOI. Is Microsoft laying off more employees again? Yes. Microsoft is planning to cut thousands of jobs in July 2025, marking the third major round of layoffs this year, as per Bloomberg report. Who will be most affected by the layoffs? Sales and customer-facing teams will be hit hardest, though other roles may be affected too, according to the Bloomberg report.

Microsoft planning thousands of job cuts aimed at salespeople, Bloomberg News reports

(Reuters) -Microsoft is planning to cut thousands of jobs, particularly in sales, as part of a broader effort to streamline its workforce while ramping up investments in artificial intelligence, Bloomberg News reported on Wednesday. The layoffs are expected to be announced early next month, following the end of the tech giant's fiscal year, the report said, citing people familiar with the matter. Microsoft did not immediately respond to a Reuters request for comment. (Reporting by Harshita Mary Varghese in Bengaluru; Editing by Alan Barona)

Microsoft eyes more job cuts as it shifts focus to AI and data centers

Microsoft is reportedly preparing to cut thousands of jobs once again, with many of the layoffs expected to affect its sales teams. The job cuts are likely to be announced in early July, shortly after the company's fiscal year ends, as part of the company's latest move to trim its workforce amid heavy spending on artificial intelligence. However, the final decision and exact timing could still change. According to Bloomberg, the layoffs won't only impact sales departments. Other teams could also be affected as part of the layoff. In May, Microsoft had already laid off around 6,000 employees, mostly from product and engineering teams. That round mostly spared customer-facing roles such as sales and marketing. In April, Microsoft had informed its employees that it would rely more on outside companies to handle software sales to small and medium-sized customers. Also read: Meta offered $100 mn signing bonuses to poach OpenAI employees, says Sam Altman The tech giant has said it regularly reviews its organisational structure to ensure that it is investing for growth. With the company investing heavily in artificial intelligence, including spending billions on servers and data centers, it's looking to save money in other parts. Microsoft had around 2,28,000 employees at the end of June 2024, with 45,000 of them working in sales and marketing roles, according to the report. The company often announces major organisational changes or restructuring around the end of its fiscal year. Also read: Amazon to cut more jobs as AI boosts efficiency, says CEO Andy Jassy Microsoft plans highlight how even global tech giants are restructuring their workforces to manage costs while accelerating their push into AI. In a similar move, Amazon CEO Andy Jassy recently informed employees that the company plans to reduce its workforce over the coming years. This strategy is part of Amazon's broader effort to integrate AI across operations and enhance overall efficiency.