Microsoft cutting more than 1,000 sales jobs due to investment in AI
Microsoft plans to significantly cut jobs in its sales force as a result of significant investments in artificial intelligence and data center expansion. Bloomberg News reports that more than 1,000 jobs, mostly in sales, are expected to be cut. This restructuring is intended to strengthen Microsoft’s leadership position by prioritising AI development and integration into products and services.
This move follows an earlier round of layoffs in May in which about 6,000 jobs were cut. The tech industry currently has a trend to integrate AI technologies deeper into its offerings, aiming for a competitive advantage in the global marketplace.
To support this initiative, Microsoft has allocated $80 billion for investment this fiscal year, a significant portion of which is for data centre expansion to address capacity constraints associated with AI services. Bloomberg expects these layoffs to be announced early next month, after the close of the fiscal year. Microsoft, however, declined to comment on the matter.
It is important to note that these cuts may not only affect sales teams, and the exact timing could still change. Last June, Microsoft employed 228,000 people worldwide.
Microsoft is not alone in its AI-driven workforce reductions. Amazon CEO Andy Jassy recently stated that the adoption of generative AI and agents is likely to reduce the company’s workforce in the coming years.
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