New Delhi, June 19: Microsoft is reportedly planning a new round of job cuts, focusing on its sales department. These upcoming Microsoft layoffs are said to be a part of its plan to reorganise teams as the company shifts more resources towards artificial intelligence (AI). The development comes as Microsoft boosts its AI investments to maintain its lead in the changing technology world.

The job cuts at Satya Nadella-run Microsoft might affect thousands of employees. As Microsoft increases its AI spending, it is aiming to build smarter solutions and tools for businesses across the world. The Microsoft layoffs are seen as a strategic move to free up resources and invest more in AI technologies. Amazon Layoffs Coming: CEO Andy Jassy Hints AI Will Reduce Workforce in Memo to Employees, Praises Generative AI for Cost Efficiency and Faster Operations.

As per a report of Bloomberg, Microsoft is preparing to lay off thousands of employees in its sales department, as part of a strategy to reduce its workforce amid investments in AI. These Microsoft job cuts are anticipated to be announced early next month, after the end of Microsoft's fiscal year. Reports indicate that the layoffs may not be limited to the sales teams, and the timing of the announcements may still change.

The exact number of job cuts has not been finalised yet, but they are expected to take place around the start of Microsoft's new fiscal year, which begins in July. As per multiple reports, Microsoft has allocated nearly USD 80 billion in capital spending for the current fiscal year, with a large portion focused on expanding its data centre infrastructure to support the rising demands of its AI operations. Intel Layoffs in July 2025 To Affect 15–20% Workforce From Its Foundry Division Responsible for In-House Chip Manufacturing: Reports.

Addressing its employees during an internal town hall, CEO Satya Nadella clarified that the earlier job cuts were not a result of underperformance. “This was not about people failing,” Nadella said. “It was about repositioning for what comes next,” explaining that the layoffs were part of a strategic shift rather than individual employee performance.

(The above story first appeared on LatestLY on Jun 19, 2025 02:49 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).