Microsoft's AI Gets $80 Billion—While Pink Slips Print By The Thousand
Microsoft is preparing for another round of layoffs, primarily affecting its sales division, as part of a restructuring to boost its investment in artificial intelligence. The layoffs, expected to be announced in early July, follow a previous cut of about 6,000 jobs in May. Microsoft has allocated $80 billion for capital expenditures this year to expand data centers and support AI operations. This trend of job cuts is seen across major companies, including Procter & Gamble and Walmart, as they adapt to changing market dynamics.
Microsoft Corp. MSFT is reportedly preparing for another round of layoffs with the majority of job cuts expected to impact its sales division.
The Details: The upcoming round of layoffs is part of a broader restructuring as the company ramps up its investment in artificial intelligence. The layoffs are anticipated to be announced in early July, aligning with the end of Microsoft's fiscal year, according to a Bloomberg report.
The exact timing and affected departments could still change and while sales roles could be hit hardest, other areas may also see reductions.
This upcoming round follows a significant layoff in May, when about 6,000 employees—roughly 3% of Microsoft's global workforce—were let go, mostly from product and engineering teams.
The company's latest restructuring reflects a shift in priorities, as Microsoft allocated $80 billion this year for capital expenditures to expand data centers and support its AI operations.
Following a separate round of layoffs in early June, a Microsoft representative told Bloomberg:
“We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace.”
Why It Matters: Several other major companies have recently made large job cuts, including Procter & Gamble eliminating 7,000 jobs over two years and Walmart slashing 1,500 positions across its technology and e-commerce divisions.
Amazon.com, Inc. AMZN CEO Andy Jassy warned last week that generative AI and agentic AI will reduce the tech giant's total workforce in the next few years.
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