Microsoft Plans Major Job Cuts Amid Shift Toward AI Investment
- Microsoft is set to cut thousands of jobs, mainly in its sales division, with layoffs expected as early as next month.
- The company is shifting focus to artificial intelligence, investing heavily in data centers and AI research.
- Microsoft has planned Rs 6.6 lakh crore ($80 billion) in capital expenditure this year, largely for expanding AI infrastructure.
Microsoft is reportedly preparing to cut thousands of jobs, primarily in its sales division, as part of a broader restructuring strategy to align with its growing focus on artificial intelligence. According to a Bloomberg report citing sources familiar with the matter, the layoffs could be announced as early as next month, following the conclusion of Microsoft’s current financial year.
While sales teams are expected to be most impacted, the report notes that the job reductions may extend beyond that department. The timing and scope of the cuts are still subject to change.
This round of layoffs comes shortly after Microsoft’s earlier workforce reduction in May, which affected around 6,000 employees across various departments.
Microsoft is rapidly pivoting towards AI, investing heavily in data centers and research to support the increasing demand for AI-powered tools and services. The company has earmarked a massive capital expenditure of Rs 6.6 lakh crore (approximately $80 billion) for the current financial year, with a significant portion allocated to expanding its data center infrastructure.
The tech giant, which employed around 2.28 lakh people as of June last year, is making these strategic changes to stay ahead in a fast-evolving technological landscape. The move reflects a growing trend among major tech firms to prioritize AI over traditional roles and operations.
