Microsoft is reportedly planning to lay off several thousand employees next month, with sales roles likely to be impacted.
The job cuts are expected to occur after Microsoft's fiscal year ends on June 30 and could affect various departments, not just sales teams.
This potential round of layoffs would be the second major one by Microsoft this year, following a prior layoff of around 6,000 employees in May.
Microsoft has around 228,000 employees, with 45,000 in sales and marketing.
The company's Chief Commercial Officer indicated plans to use third-party firms for software sales to small and mid-size customers, affecting in-house sellers.
While Microsoft has not confirmed the layoffs, a spokesperson previously mentioned the evolution of the sales organization to align with the AI era.
Other tech companies like Autodesk, Google, Meta Platforms, Intel, and CrowdStrike have also announced job cuts this year amid AI's impact on various sectors.
Amazon's CEO anticipates a smaller workforce in the future due to increased AI automation, with tasks shifting to generative AI tools and AI agents.
AI advancements are expected to lead to job redundancies in companies, requiring workforce adjustments across different industries.