Microsoft is planning to cut thousands of jobs in the next few weeks, Bloomberg reports, citing people familiar with the plans.
Details about the layoffs are scarce, but Bloomberg says it will be announced early next month once Microsoft’s fiscal year ends. The cuts will impact multiple departments, but Microsoft’s sales team is expected to take the biggest hit.
The report arrives just a month after Microsoft removed 6,000 jobs across various departments and seniority levels. It was done to reduce management layers and “best position the company for success in a dynamic marketplace,” Microsoft said at the time.
As of June 2024, Microsoft had 228,000 employees, and 45,000 of them were in sales and marketing. According to Bloomberg, the previous round of layoffs had largely left the sales and marketing teams untouched.
In April, however, the company informed employees that it plans to use third-party firms for the marketing of software to small and mid-size customers. This strategy could help Microsoft reduce operational costs by relying on gig workers for short-term campaigns instead of full-time staff.
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Microsoft has also vowed to invest over $80 billion in data centers for AI development, but it’s unclear if that has anything to do with the back-to-back layoffs.
The months ahead may be tough for tech workers, with more layoffs looming across major firms. Amazon CEO Andy Jassy just announced that AI agents will replace a considerable number of jobs at the online retailer. Intel is also planning to lay off 15-20% of its factory workforce amid financial struggles.
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About Jibin Joseph
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