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AI is raising the bar for sales — and Microsoft's layoffs prove the 'relationship guy' is out, says a software investor

  • Microsoft recently laid off less than 4% of its workforce, including many generalist sales reps, as part of a broader shift in the sales industry.
  • Software investor Jason Lemkin suggests that the traditional 'relationship guy' in sales is being phased out in the age of AI, with solution engineers who deeply understand the product taking their place.
  • Lemkin believes that AI will replace a significant portion of one-to-two call sales reps, with companies adapting to higher customer expectations by prioritizing product knowledge over soft skills in sales roles.
  • Microsoft's job cuts are part of the company's strategy to pivot towards more technical salespeople, with the aim of streamlining the sales process and meeting customer demand for earlier technical engagement.

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