Microsoft to Lay off More People

Business

20 June 2025 13:39

Microsoft is preparing to lay off thousands of employees, primarily in its sales division, as part of a broader effort to streamline its workforce amid an aggressive push into artificial intelligence, Bloomberg News reported Wednesday, citing sources familiar with the matter.

The reported cuts are expected to be announced in early July, following the end of Microsoft’s fiscal year. While the job losses are anticipated to hit sales teams particularly hard, Bloomberg noted that the layoffs will not be limited to one department, and that the timing remains subject to change.

The impending job reductions come on the heels of a previous round of layoffs in May that saw approximately 6,000 employees let go. Microsoft, like many tech giants, is recalibrating its operations to prioritize artificial intelligence as demand for AI-integrated services continues to grow across industries.

The company has committed a staggering $80 billion in capital expenditures for the current fiscal year, much of it earmarked for expanding data center infrastructure to alleviate capacity constraints for its AI offerings.

As the industry pivots toward AI, workforce reshaping has become an emerging trend. On Tuesday, Amazon CEO Andy Jassy acknowledged that the rollout of generative AI and autonomous agents would likely reduce Amazon’s corporate workforce over the next several years.

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Tags: Microsoft

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