Microsoft is preparing to lay off thousands of employees, mainly from its sales department, as part of a broader restructuring initiative. This follows the company’s previous decision to eliminate approximately 6,000 positions across various departments last month. The impending job cuts are expected to be announced shortly, potentially after the end of the company’s fiscal year. The restructuring is driven by Microsoft’s increasing focus on artificial intelligence. The company is reorganizing its teams and allocating resources to expand its investments in AI technologies and the necessary infrastructure. While sales roles will be most affected, other departments will also face potential cuts.
This restructuring is indicative of the shifting priorities within Microsoft and is intended to better position the company to provide in-demand AI services to enterprise clients. A significant capital expenditure of around $80 billion is planned for this financial year, primarily for building out the company’s data center infrastructure. This large-scale investment will help relieve pressure on current facilities and accelerate the development of AI capabilities. The company aims to leverage AI to maintain its competitive advantage within the fast-paced technology sector. Despite the upcoming layoffs, Microsoft maintains a large global workforce. These strategic decisions highlight the company’s commitment to leading in the AI race while optimizing its operations in established business areas.