Microsoft is planning to replace traditional sales roles with more technical roles in response to increased competition from OpenAI and Google.
The company's layoffs targeted thousands of salespeople and aims to replace them with solutions engineers to better sell AI tools and provide technical demos earlier in the sales process.
Microsoft is seeking to streamline its sales approach and increase technical understanding among its salesforce to meet customer demands for quicker access to technical expertise.
The sales reorganization is part of Microsoft's strategy to simplify how it sells AI tools and become the 'Frontier AI Firm, with a focus on strengthening its sales priorities and organization structure.