New York: In a fresh wave of job cuts, tech giant Microsoft is reportedly gearing up to lay off more employees, this time with a major impact expected in its sales and marketing divisions. The move is part of the company’s ongoing efforts to restructure its workforce to align with its growing investment in artificial intelligence technologies.
Although Microsoft has yet to issue an official statement, sources cited by Bloomberg suggest that a formal announcement could be made by June 30.
This follows an earlier round of layoffs in which around 6,000 employees across multiple departments lost their jobs. Now, it's estimated that roughly 3% of Microsoft’s global workforce may be affected in this latest cut. With a total headcount of 228,000 as of June 2024—including 45,000 in sales and marketing the shift towards automation is expected to have a significant impact on traditional roles.
The driving force behind these decisions appears to be Microsoft’s aggressive push into generative AI, particularly through its major backing of OpenAI. As the company increasingly integrates AI into its core services and operations, several roles are being re-evaluated or phased out in favor of automated solutions.
Industry analysts view these back-to-back layoffs as part of a broader strategic overhaul aimed at making Microsoft leaner, more efficient, and more competitive in the rapidly evolving AI-dominated tech landscape. While the move signals Microsoft's commitment to leading the AI revolution, it also underscores the human cost of technological transformation particularly in departments that were once considered essential.