Microsoft is preparing to implement another significant round of layoffs, this time targeting thousands of roles in its sales and marketing divisions, according to multiple reports.
The move is part of the company’s broader effort to streamline operations and reallocate resources toward its rapidly expanding artificial intelligence (AI) initiatives.
The layoffs are expected to be announced in early July 2025, following the close of Microsoft’s fiscal year.
This marks the third major workforce reduction by the tech giant in 2025.
It follows a 6,000-person layoff in May, which primarily affected product and engineering teams.
Why Sales? A Shift in Strategy
While previous cuts largely spared customer-facing roles, the upcoming round of layoffs will be different.
It will heavily impact sales personnel, especially those handling direct software sales to small and mid-sized businesses.
In April, Microsoft began outsourcing portions of its sales operations to third-party firms, signaling a shift in how it approaches client engagement.
The company currently employs around 45,000 people in sales and marketing, out of a total workforce of 228,000 as of June 2024.
Sources suggest that the layoffs will not be limited to sales alone, but that division will bear the brunt of the restructuring.
AI Investments Drive Cost-Cutting Measures
Microsoft’s decision comes amid record-breaking investments in AI infrastructure, with a planned capital expenditure of $80 billion this fiscal year.
A significant portion of this budget is being funneled into data center expansion to support the company’s growing suite of AI services.
CEO Satya Nadella has emphasized the need to “realign” the workforce to meet evolving strategic goals.
The company has pledged to limit spending in non-core areas while doubling down on AI, cloud computing, and enterprise solutions.
Microsoft Layoffs: Timing and Uncertainty
The layoffs are expected to be formally announced in early July. This period is when Microsoft traditionally restructures teams and introduces internal changes.
However, sources caution that the timing and scope of the cuts could still change.
Microsoft has declined to comment on the reports.
The company is maintaining its standard practice of not discussing personnel decisions before official announcements.
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