Microsoft to cut thousands more jobs in July amid AI focus
After cutting 6,000 jobs in May, Microsoft is preparing another round of layoffs to realign its workforce with AI-driven growth strategies.
Microsoft is preparing to lay off thousands more employees next month, primarily in sales teams, as it continues to shift focus toward AI.
The move follows May’s workforce reduction of 6,000 employees, about 3% of its staff, and reflects broader restructuring efforts rather than individual performance issues.
Sources cited by Bloomberg revealed that the next wave of job cuts is likely to begin in early July, following the end of Microsoft’s fiscal year. Although details may still change, internal teams across departments are expected to be impacted, with sales employees taking the largest hit.
The cuts come as Microsoft seeks to streamline operations while investing heavily in data centres and AI infrastructure.
CEO Satya Nadella previously explained that the recent layoffs were not due to poor performance but part of an organisational realignment.
During a company town hall, he stressed the emotional weight of the decision but reiterated that the cuts were necessary to reflect evolving business priorities, especially around AI.
Earlier in April, Microsoft announced that it would rely more on third-party partners to manage software sales for smaller customers.
With tens of billions of dollars allocated to AI development, executives have promised to control spending in other areas, which includes reducing staff in traditional roles like sales and marketing.
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