Microsoft Plans Major AI-Driven Job Cuts as Tech Giant Streamlines Workforce

Amid surging AI investments, Microsoft is reportedly preparing to lay off thousands of employees, with sales teams among those affected, as the company restructures ahead of a new fiscal year.

In a significant development highlighting the disruptive impact of artificial intelligence on the tech workforce, Microsoft is planning to cut thousands of jobs, primarily in its sales division, as part of a broader AI-driven restructuring effort. According to a Bloomberg News report on June 18, the layoffs are expected early next month and follow an earlier round of cuts in May that impacted roughly 6,000 employees.

Microsoft (MSFT.O), the global tech behemoth, is reportedly preparing for another sweeping round of job cuts, this time with a particular focus on sales roles. The move is part of the company’s strategy to streamline operations as it deepens its commitment to artificial intelligence (AI), Bloomberg News reported Wednesday, citing sources familiar with the matter.

This latest development comes just weeks after Microsoft eliminated approximately 6,000 positions in May. The anticipated layoffs underscore a growing trend in the tech sector: restructuring traditional roles to make way for AI-powered innovation.

The layoffs are expected to be announced in early July, immediately following the end of Microsoft’s fiscal year. While sales teams are expected to be heavily impacted, the job cuts may extend to other departments as well, the report noted. Sources also cautioned that the exact timing and scope of the reductions could still change.

Microsoft’s aggressive shift toward AI is reshaping its business priorities. The company has committed a staggering $80 billion in capital expenditures for this fiscal year—most of it earmarked for expanding its global network of data centers. These facilities are essential for addressing the surging demand for AI-powered services and cloud infrastructure.

With AI integration becoming a critical focus for enterprises across industries, Microsoft is positioning itself to lead the charge. The restructuring is intended to align its workforce with its future vision—heavily centered on generative AI and machine learning capabilities.

The broader tech industry is also navigating similar transformations. Amazon CEO Andy Jassy remarked earlier this week that the rise of generative AI and automated agents is expected to shrink Amazon’s corporate workforce over the next few years.

Microsoft declined to comment on the Bloomberg report when contacted.

As of June last year, Microsoft employed approximately 228,000 people globally. The company’s ongoing job cuts reflect a significant shift in the employment landscape as AI reshapes how large organizations allocate talent and resources.