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

  • Microsoft is preparing to cut thousands of jobs, primarily affecting sales teams, as it shifts focus to AI and data centers.
  • The job cuts are expected to be announced in early July after the fiscal year ends, with a possible impact on various departments.
  • Around 6,000 employees were laid off by Microsoft in May, mostly from product and engineering teams.
  • In April, Microsoft planned to rely more on outside companies for software sales to small and medium-sized customers.
  • The company regularly reviews its organizational structure to invest in growth and is looking to save money while investing in AI.
  • Microsoft had 228,000 employees by the end of June 2024, with 45,000 in sales and marketing roles.
  • Global tech giants like Microsoft and Amazon are restructuring their workforces to control costs and enhance AI integration.
  • Amazon CEO Andy Jassy announced plans to reduce the workforce in line with integrating AI for efficiency.
  • Microsoft's strategy reflects the broader trend of tech firms reshaping their workforce and accelerating AI adoption.
  • Both Microsoft and Amazon are emphasizing AI investments while making organizational changes to drive growth and efficiency.

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