The layoffs are expected to be announced early next month, following the end of the tech giant’s fiscal year, the report said, citing people familiar with the matter.<\/p>\n
Sales teams will not be exclusively affected by the reductions, and the timing could still change, the people told the outlet.<\/p>\n
The terminations follow a previous round of Microsoft layoffs in May<\/a>\u00a0that hit more than 6,000 people, mostly in product and engineering positions.\u00a0<\/p>\n In April, the largest company in the world said it planned to use third-party firms to handle more sales\u00a0of software to small and mid-size customers.<\/p>\n The company had a global headcount of 228,000 at the end of June 2024.\u00a0<\/p>\n Microsoft has market capitalization of over $3 trillion, but it is looking to\u00a0rein in costs as it funnels billions into its ambitious bet on artificial intelligence.<\/p>\n Microsoft is planning to cut thousands of jobs as it ramps up investments in artificial intelligence (Pictured: CEO\u00a0Satya Nadella)<\/p>\n Microsoft declined to comment to Bloomberg about the potential job cuts.\u00a0\u00a0<\/p>\n The news comes a day after\u00a0Amazon’s CEO\u00a0announced brutal workforce cuts<\/a> as the company also increases its use of AI.<\/p>\n Amazon boss Andy Jassy said he plans to reduce the company’s corporate workforce over the next few years as the tech will make certain roles redundant.\u00a0\u00a0<\/p>\n Jassy told employees in a note\u00a0seen by the Wall Street Journal that AI was a once-in-a-lifetime technological advancement and it has already transformed how Amazon operates.<\/p>\n ‘\u200b\u200bAs we roll out more Generative AI and agents, it should change the way our work is done,’ he wrote in the memo.<\/p>\n It is not yet clear how many workers will lose their jobs and when the cuts will come.\u00a0<\/p>\n ‘It’s hard to know exactly where this nets out over time, but in the next few years, we expect that this will reduce our total corporate workforce,’ Jassy explained.\u00a0<\/p>\n Those close to the matter told the outlet that a large chunk of the decrease in headcount would hopefully occur via attrition. This means as employees move on their roles will not be filled.\u00a0<\/p>\n In an aerial view, the Microsoft headquarters in Redmong, Washington<\/p>\n Microsoft’s cuts, which will hit sales roles in particular, are part of a broader effort to streamline the company’s workforce\u00a0<\/p>\n Amazon boss Andy Jassy warned that AI will lead to job cuts\u00a0<\/p>\n However, this will not cover all of the reductions and layoffs are still expected to occur at some point.\u00a0<\/p>\n Amazon is the second largest employer in the country and is seen as a bellwether for employment stability.\u00a0<\/p>\n The company has already slowed hiring, suggesting AI is already influencing the company’s staffing needs.<\/p>\n It is also clear the company is betting big on the new technology, after it revealed plans to splash $100 billion on data centers that AI depends on.\u00a0<\/p>\n It comes as Americans grow increasingly concerned about\u00a0the impact of AI on the jobs market<\/a>.\u00a0\u00a0<\/p>\n The tech is continuing to upend the jobs market with white collar entry-level jobs disappearing fastest and layoffs in tech, finance and consulting gathering pace.\u00a0<\/p>\n![\"Microsoft](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/06\/98336191-14826219-image-a-39_1750275211543.jpg\")
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