Microsoft is reportedly planning a significant restructuring that will involve laying off thousands of employees, with a substantial portion coming from the sales department. This follows a previous round of layoffs last month, where approximately 6,000 employees across various departments were affected. The impending job cuts are anticipated to be announced soon, potentially after Microsoft’s financial year-end. The primary driver behind these layoffs is Microsoft’s strategic shift towards artificial intelligence. The company is actively reorganizing teams and reallocating resources to bolster its investments in AI technologies and infrastructure. While sales positions will bear the brunt of the cuts, other departments are also expected to be impacted.
The sales teams are facing a major overhaul as Microsoft adapts to changing priorities. The restructuring aims to better position the company to provide AI services, which are experiencing high demand, particularly from enterprise clients. Microsoft is projecting a capital expenditure of approximately $80 billion this financial year, primarily for building its data center infrastructure. This substantial investment aims to alleviate pressure on existing facilities and accelerate AI development. Microsoft seeks to leverage AI to maintain its competitive edge in the rapidly evolving technology landscape. Despite these layoffs, Microsoft’s global workforce remains considerable, with around 228,000 employees as of June 2017. The recent strategic decisions underscore the company’s commitment to leading in the AI race while optimizing operations in traditional business areas.