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Microsoft to Cut Thousands of Sales Jobs in AI Push

Scheduled after its fiscal year end, the cuts reflect Microsoft’s drive to scale its AI data centers.

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Microsoft
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Overview

  • The company plans to announce the latest round of layoffs early next month, targeting primarily sales roles.
  • In May, Microsoft eliminated about 6,000 positions across all levels and regions when it had 228,000 employees.
  • Microsoft has earmarked $80 billion for AI investments in the current fiscal year, with most funding directed to data centers.
  • Earlier this month, it committed $400 million to expand AI and cloud infrastructure in Switzerland.
  • Amazon CEO Andy Jassy expects AI to reduce demand for office-based roles and plans to leave vacated positions unfilled.