Microsoft to cut thousands of jobs amid focus on AI investment: Sources

Guwahati: Microsoft Corporation is preparing to cut thousands of jobs, with a particular focus on its sales workforce, as part of ongoing efforts to reduce costs amid significant investments in artificial intelligence.

Sources familiar with the matter, speaking on condition of anonymity, said the company plans to announce the layoffs early next month, after the close of its fiscal year.

While sales roles are expected to be most affected, the reductions may extend beyond that area, and the timing could still change.

This round of cuts follows a previous reduction in May, when approximately 6,000 employees, mainly from product development and engineering, were laid off. Sales and marketing teams were largely unaffected at the time.

In April, Microsoft informed employees it would rely more on third-party vendors to handle software sales to small and mid-sized businesses.

The company has said it regularly reassesses its organizational structure to ensure alignment with growth priorities. With billions being spent on servers and data centers, Microsoft leadership has pledged to rein in spending in other areas to maintain financial discipline.