Microsoft is planning to lay off thousands of employees as part of a larger restructuring, with the majority of cuts impacting the sales department. This comes after a previous round of layoffs last month, which affected about 6,000 employees across various departments. The new layoffs are expected to be announced soon, potentially after the end of Microsoft’s fiscal year. The strategic shift towards artificial intelligence is the primary cause of these layoffs. The company is reorganizing its teams and reallocating resources to increase investment in AI technologies and related infrastructure. While the sales department will be most affected, other departments are also likely to see cuts.
The company’s sales force is undergoing a major shakeup as Microsoft adapts to its changing priorities. This restructuring will help Microsoft to better facilitate the delivery of AI services, which are in high demand among enterprise clients. Microsoft is projecting a capital expenditure of approximately $80 billion this financial year, mainly to build out its data center infrastructure. This large investment is meant to reduce strain on current facilities and accelerate the development of AI. Microsoft hopes to use AI to maintain its competitive edge in the rapidly evolving tech world. Despite the layoffs, Microsoft’s worldwide employee count is still substantial. These strategic decisions emphasize the company’s need to win the AI race and streamline its operations in traditional business fields.