Microsoft is preparing to cut thousands of jobs, mainly in its sales division, reported Bloomberg. The news of workforce reduction comes as the tech company continues to adjust its workforce while investing more heavily in artificial intelligence.
The report, which cites people familiar with the matter, says that the job cuts could be announced as early as next month. This will likely follow the end of Microsoft’s current financial year. While sales teams are expected to be affected the most, the report notes that the layoffs will not be limited to them. The final decision on timing may still change.
This round of layoffs follows Microsoft’s earlier job cuts in May, which impacted around 6,000 workers across various departments.
Microsoft has been focusing more on AI as it tries to stay ahead in a fast-changing technology landscape. The company is putting more money into data centres and AI research to support growing demand from businesses that are adopting AI tools and services.
The report also said that Microsoft has planned capital expenditure of around Rs 6.6 lakh crore ($80 billion) for the ongoing financial year. A large part of this spending will go into expanding data centre infrastructure. The aim is to reduce pressure on existing facilities that support AI services.
As of June last year, Microsoft had about 2.28 lakh employees.