It is reported that Microsoft plans to lay off thousands of employees primarily in sales positions to balance AI investment expenditures
Microsoft plans to cut thousands of sales positions to balance its investment spending in the artificial intelligence sector. The layoff plan is expected to be announced early next month, following the action in May that laid off 6,000 employees. This round of layoffs will affect the sales team, with specific timing subject to change. Microsoft stated that it will regularly assess its organizational structure to ensure investments lead to growth. As of the end of June 2024, Microsoft has a total of 228,000 employees, of which 45,000 are engaged in sales and marketing
According to Zhitong Finance APP, Microsoft (MSFT.US) plans to cut thousands of jobs, particularly in sales positions, as part of its latest move to reduce headcount due to its significant investments in the field of artificial intelligence. According to informed sources, the layoff plan is expected to be announced early next month, coinciding with the end of Microsoft's fiscal year. These layoffs will not only affect the sales team, and the specific timing may still change.
This round of layoffs will follow a previous round in May, which involved 6,000 people, with the most significant impact on product and engineering positions, while customer-facing service roles (such as sales and marketing) were relatively less affected. In April, the company informed employees that it planned to leverage third-party companies to expand its software sales business to small and medium-sized customers.
Microsoft stated that it regularly reassesses its organizational structure to ensure that its investments are focused on achieving growth. As the company has invested billions of dollars in servers and data centers, executives have made commitments to Wall Street and warned employees that they will control spending in other areas.
As of the end of June 2024, the company has a total of 228,000 employees, of which 45,000 are engaged in sales and marketing roles. Microsoft typically reorganizes its teams and announces other changes as it approaches the end of its fiscal year (i.e., the end of June)
