Microsoft is reportedly preparing for another significant round of layoffs, with thousands of jobs expected to be cut, particularly within its global sales and marketing divisions.
The move comes as the technology giant continues to pivot its resources and investments heavily towards artificial intelligence, according to a report by Bloomberg News published Wednesday, which cited people familiar with the matter.
The anticipated job cuts are rumored to be announced in early July, following the conclusion of Microsoft's fiscal year. This follows a previous round of layoffs in May that affected approximately 6,000 employees across various departments.
While the primary focus of the upcoming restructuring is said to be on the sales teams, the report suggests that the cuts will not be exclusive to this division. The exact number of employees to be impacted and the specific timing of the announcement could still be subject to change. Microsoft has declined to comment on the reports.
This strategic workforce adjustment aligns with Microsoft's aggressive investment in AI. The company has allocated a substantial $80 billion for capital expenditure this fiscal year, with a significant portion dedicated to expanding its data center capacity to support the growing demands of AI services.
This shift in focus is reflective of a broader industry trend where major tech companies are re-evaluating their workforce needs in light of advancements in artificial intelligence.
The potential for AI to reshape corporate structures was recently highlighted by Amazon CEO Andy Jassy, who stated that the implementation of generative AI could lead to a reduction in their corporate workforce in the coming years.
As of June of last year, Microsoft employed 228,000 people worldwide. The company's sales and marketing division is one of its largest, making any significant changes within this unit impactful.
The rumored layoffs underscore the evolving priorities within the tech sector, as companies streamline certain operations to fund and capitalize on the transformative potential of artificial intelligence.
While Microsoft has not officially confirmed the job cuts, the reports have generated considerable discussion about the future of work and the impact of AI on employment in the technology industry.
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