Bad news is coming for Microsoft employees—the company is reportedly planning another round of large-scale layoffs, mainly targeting the sales department.
According to a Bloomberg report, this move is part of Microsoft’s effort to streamline its workforce while increasing investment in artificial intelligence (AI).
The layoffs are likely to be announced early next month, once Microsoft’s financial year ends.
Layoffs Expected After End of Financial Year
Microsoft’s financial year runs from July 1 to June 30. While sales teams are expected to be affected the most, the report also says that other departments may face job cuts too.
The exact timing of the layoffs may change, depending on internal planning.
As of June 2024, Microsoft had about 2.28 lakh full-time employees worldwide, with 55% based in the U.S.
Layoffs Already Happened in May and June
This will not be the first round of job cuts this year. In May 2025, Microsoft laid off nearly 6,000 employees, which was one of the biggest layoffs in recent years for the company.
In early June, Microsoft also let go of over 300 employees, according to information revealed in a Washington State notice, as reported by Bloomberg.
AI Boom Changing Job Roles
Microsoft, like many other companies, is heavily investing in AI and shifting focus toward AI-related roles.
Businesses across industries are now adopting AI in their products and services to reduce costs and improve efficiency.
For example, Amazon CEO Andy Jassy recently said that the rollout of generative AI and AI agents will lead to a reduction in corporate jobs over the next few years.
Microsoft to Spend $80 Billion This Year
Microsoft plans to spend around $80 billion in capital expenditure this fiscal year.
Most of this spending will go towards building and expanding data centers to support AI services, as demand for AI infrastructure continues to rise.
