Tech giant Microsoft is reportedly preparing for another wave of layoffs in July, just weeks after cutting around 6,000 roles in May. The next round of job cuts is expected to affect thousands of employees, with sales and support teams likely to be hit the hardest, according to a report by Bloomberg.
What’s Driving the Layoffs?
The job cuts are not related to performance, according to Microsoft CEO Satya Nadella, but are part of a broader internal restructuring strategy. The goal is to realign teams with the company’s increasing focus on artificial intelligence (AI) and long-term tech investments.
Nadella previously emphasized that the recent changes are necessary to stay competitive and efficient as Microsoft continues to scale its AI capabilities.
AI Takes Center Stage
Microsoft has been pouring billions of dollars into building advanced AI infrastructure, including servers and massive data centers. To offset this rising cost, the company is choosing to streamline other areas of the business, particularly its workforce.
The restructuring is a part of Microsoft’s ongoing effort to optimize operations while prioritizing growth areas like AI, cloud services, and machine learning.
When Will the Next Layoffs Happen?
Sources familiar with the matter told Bloomberg that the upcoming job cuts are expected to occur in early July, following the end of Microsoft’s fiscal year. However, the exact timing could shift depending on internal decisions.
The layoffs are expected to be broad, but sales roles will likely see the biggest impact. Microsoft declined to officially comment on the reports.
Recap of the May 2024 Layoffs
In May, Microsoft eliminated 6,000 positions, roughly 3% of its global workforce. That round primarily impacted product and engineering teams, while customer-facing roles such as sales and marketing were mostly unaffected at the time.
This new wave, however, is expected to target sales divisions more directly, as the company continues to reshape its business model.
Microsoft’s Headcount and Future Outlook
As of mid-2024, Microsoft had approximately 228,000 employees in sales and marketing roles. The company has also indicated it will be working more with third-party firms to manage software sales to small and mid-sized businesses — a move that may contribute to internal staff reductions.
Despite the job cuts, Microsoft has maintained that these actions are in line with its commitment to responsible growth. Executives have assured shareholders that the company is making disciplined decisions to ensure long-term success in an increasingly AI-driven market.
What This Means
While job cuts are always tough news for employees, Microsoft’s restructuring is part of a larger industry trend. As tech companies scale AI operations, they’re shifting resources from traditional roles to future-focused initiatives.
For employees, investors, and observers alike, the key takeaway is clear: Microsoft is betting big on AI — and it’s reshaping everything around that strategy.
#MicrosoftLayoffs #TechNews #AIInvestment #SatyaNadella #MicrosoftNews #BusinessRestructuring #FinmatesFinance #WorkforceUpdate
