Microsoft is gearing up to lay off thousands of employees, mainly in its sales division, as the tech giant sharpens its focus on artificial intelligence and expands its global data center infrastructure.
This decision is part of a larger strategy to streamline operations and shift resources toward areas with high growth potential. Bloomberg was the first to break the news, citing sources close to the situation.
This latest round of job cuts comes on the heels of a previous wave in May that impacted around 6,000 employees. While Microsoft hasn’t revealed the exact number of positions that will be cut this time, the restructuring highlights the company’s increasing commitment to weaving AI-driven technologies into its suite of products and services.
Looking ahead to 2024, Microsoft plans to invest about $80 billion in capital expenditures, with a significant portion earmarked for expanding data centers that support AI computing workloads. This boost in investment signals a strategic shift as the company seeks to strengthen its position in the AI arena, largely fueled by partnerships like the one with OpenAI and the incorporation of AI features throughout its Microsoft 365 suite and Azure platform.
An official announcement about the layoffs is anticipated early next month. When Bloomberg reached out for a comment, Microsoft chose not to provide a statement.
As of June last year, Microsoft had around 228,000 employees worldwide.
