Microsoft Announces New Round of Layoffs Amid AI Investment Focus
Microsoft Corporation is planning another round of layoffs, this time targeting its sales division. This move comes as part of the company’s broader strategic shift to deepen its investment in artificial intelligence (AI). The layoffs are expected to start early next month, coinciding with the end of Microsoft’s fiscal year on June 30.
Recent Job Cuts Align with Microsoft’s Strategic Shift
This round of layoffs follows earlier ones, including a significant reduction of about 6,000 positions in May, primarily affecting engineering and product teams. Microsoft had also implemented smaller cuts in January, which were described as performance-based. The current round of job cuts, which may involve thousands of employees, is viewed as part of Microsoft’s ongoing transition toward AI-focused initiatives, signaling the company's commitment to leveraging AI technology in its operations.
Also Read: Wispr Flow Raises $30 Million in Series A to Revolutionize Dictation Technology
AI Investment Drives Organizational Restructuring
Microsoft’s emphasis on AI investment has become the central driver behind this latest reorganization. The company’s ongoing AI strategy, including its partnerships with key AI platforms, reflects a deepened focus on integrating AI across its product and service offerings. As Microsoft advances its AI investments, it is shifting away from some traditional roles in favor of a more AI-centric workforce, aligning with broader industry trends in AI adoption.
