Microsoft to Cut Thousands More Jobs in July, Targeting Sales Teams

Microsoft (Nasdaq: MSFT) plans to eliminate thousands more jobs in early July, with sales teams bearing the brunt of the cuts, as the company continues to make major investments in artificial intelligence, according to Bloomberg, which cited people familiar with the matter.

The reductions would mark Microsoft’s fourth round of layoffs in 2025 and are expected to be announced after the company’s fiscal year ends in June, said the people, who requested anonymity to discuss private matters.

The Redmond, Washington-based tech giant has already eliminated about 8,300 positions this year, including 6,000 workers in May and fewer than 2,300 in January.

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As mentioned, the planned July layoffs would focus heavily on sales teams, representing a shift in how Microsoft approaches software sales to small and mid-size customers. In April, the company told employees it would increasingly rely on third-party firms for those sales efforts.

The May layoffs primarily affected product and engineering positions while largely sparing customer-facing roles. Microsoft employed about 228,000 workers worldwide as of June 2024, with roughly 45,000 in sales and marketing roles.

The job cuts come as Microsoft spends billions of dollars on servers and data centers to support its AI development. Company executives have told investors they plan to maintain spending discipline in other areas while prioritizing AI infrastructure investments.

Microsoft has previously said that “as they typically do year-round, teams evaluate business priorities and ensure they are aligning to the right opportunities for strategic growth” when discussing workforce adjustments.

Similarly, Meta Platforms Inc. (Nasdaq: META), Intel Corp. (Nasdaq: INTC), and other major technology companies have announced thousands of layoffs this yearwhile investing heavily in AI capabilities. However, the tech layoff wave has slowed compared to 2024, when more than 150,000 jobs were cut across 549 companies, according to tracking site Layoffs.fyi.

Information for this story was found via Bloomberg, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.